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Sports betting innovator launches new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most effective innovation groups is beginning again with a new firm - and has actually protected the biggest preliminary financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting website FanDuel in 2009 in Edinburgh.
The brand-new company has seed funding of $21m.
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It aims to introduce a new open source software platform, on which others can innovate in sports betting, in the very first half of next year.
The company is recruiting personnel from a base in Scotland.
FanDuel was offered to Flutter - previously named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal disagreement with FanDuel's later stage investors over the method in which they structured a takeover, which left the Edinburgh team without a share of the increasing assessment.
Mr Eccles said that one thing he found out from the FanDuel experience was to pick investors carefully.
He told BBC Scotland: "We took a lot of lessons from that, among which was the importance of who we choose as investors in this brand-new company, to guarantee their values are lined up with ours, that they take their fiduciary tasks responsibly, which they're the ideal partners for us."
The $21m seed financing for BetDEX consists of stakes taken by seven backers of US innovation companies, consisting of 2 large funds - Paradigm and FTX - which specialise in buying business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering market charges high costs for poor products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will successfully complete versus incumbents with a considerably exceptional product and low fees, which is now possible with the arrival of the blockchain innovation."
As chairman of the new company, Mr Eccles said it might look familiar to retail punters utilized to existing online firms.
'Pool of talent'
However, he says that those who utilize its platform to run their own wagering firms will have the ability to innovate and develop a wider series of sports betting products.
He stated the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX ought to permit that to fall listed below 1%.
The company will establish its own sports betting apps to run on the platform.
Mr Eccles said these would take an "intelligent, thoughtful" method to the method they are marketed to safeguard those who deal with problem sports betting.
He stated the team of around 500 software engineers who assisted develop FanDuel from Scotland showed that it stays the place to develop a firm. BetDEX has the very same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was developed on an extremely experienced, really gifted engineering team, that developed this product that might process millions of bets and users.
"There's a genuine talent swimming pool of knowledgeable engineers who assisted us build our product and that's what we desire to leverage for BetDEX too."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power buys dream sports betting site
23 May 2018
FanDuel creator leaves company
Published
20 November 2017
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Sports Betting Innovator Launches new Start up
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