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sports betting wagering innovator launches brand-new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most successful innovation teams is beginning once again with a new firm - and has actually protected the greatest preliminary financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering site FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding of $21m.
It aims to release a brand-new open source software platform, on which others can innovate in sports betting, in the first half of next year.
The company is hiring staff from a base in Scotland.
FanDuel was offered to Flutter - formerly 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 stage financiers 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 discovered from the FanDuel experience was to select investors thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, one of which was the value of who we choose as investors in this brand-new business, to ensure their values are aligned with ours, that they take their fiduciary responsibilities responsibly, which they're the ideal partners for us."
The $21m seed financing for BetDEX includes stakes taken by seven backers of US technology firms, including two large funds - Paradigm and FTX - which specialise in purchasing business operating with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, stated: "The sports betting industry charges high costs for bad items and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this technique. We will effectively compete against incumbents with a significantly superior product and low charges, which is now possible with the introduction of the blockchain innovation."
As chairman of the brand-new company, Mr Eccles said it could look familiar to retail punters used to existing online companies.
'Pool of talent'
However, he states that those who utilize its platform to run their own sports betting companies will have the ability to innovate and develop a larger variety of wagering products.
He stated the typical share taken by online bookmakers is 7% to 10% of a stake, but BetDEX needs to enable that to fall below 1%.
The company will establish its own wagering apps to operate on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" technique to the method they are marketed to secure those who have a hard time with issue gambling.
He stated the team of around 500 software application engineers who helped develop FanDuel from Scotland revealed that it remains the location to construct a company. BetDEX has the same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was on a highly skilled, very skilled engineering team, that developed this product that could process millions of bets and countless users.
"There's a genuine skill swimming pool of skilled engineers who helped us develop our item which's what we wish to utilize for BetDEX also."
Related subjects
Edinburgh
sports betting wagering
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Paddy Power purchases fantasy sports betting site
23 May 2018
FanDuel creator leaves company
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Published
20 November 2017
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Sports Betting Innovator Launches new Start up
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