sports betting wagering 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 teams is starting once again with a brand-new firm - and has actually secured the biggest initial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering website FanDuel in 2009 in Edinburgh.
The brand-new company has seed funding of $21m.
It aims to release 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 hiring staff from a base in Scotland.
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FanDuel was sold to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal conflict with FanDuel's later phase financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing appraisal.
Mr Eccles stated that one thing he discovered from the FanDuel experience was to choose financiers thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we pick as investors in this brand-new business, to guarantee their worths are aligned with ours, that they take their fiduciary tasks responsibly, which they're the ideal partners for us."
The $21m seed financing for BetDEX includes stakes taken by seven backers of US innovation companies, including two large funds - Paradigm and FTX - which specialise in buying companies operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting industry charges high rates for bad items and limits trades by its most effective users.
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"BetDEX is diametrically opposed to this technique. We will successfully contend against incumbents with a markedly remarkable item and low fees, which is now possible with the arrival of the blockchain innovation."
As chairman of the brand-new firm, Mr Eccles said it might look familiar to retail punters utilized to existing online firms.
'Pool of skill'
However, he states that those who utilize its platform to run their own wagering firms will be able to innovate and create a larger variety of sports betting products.
He said the common share taken by online bookies is 7% to 10% of a stake, however BetDEX needs to allow for that to fall listed below 1%.
The business will establish its own wagering apps to run on the platform.
Mr Eccles stated these would take an "smart, thoughtful" technique to the method they are marketed to protect those who deal with problem sports betting.
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He stated the team of around 500 software application engineers who assisted develop FanDuel from Scotland revealed that it stays the place to construct a firm. BetDEX has the exact same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was built on a highly experienced, really skilled engineering group, that built this item that might process countless bets and countless users.
"There's a genuine skill pool of knowledgeable engineers who assisted us develop our item and that's what we desire to leverage for BetDEX as well."
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Sports Betting Innovator Launches new Start up
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