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 successful technology groups is beginning once again with a new company - and has secured the greatest initial financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering website FanDuel in 2009 in Edinburgh.
The new company has seed funding of $21m.
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It aims to launch a new open source software platform, on which others can innovate in sports betting wagering, in the very first half of next year.
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The business is recruiting staff from a base in Scotland.
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FanDuel was sold to Flutter - previously named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal conflict with FanDuel's later phase investors over the way in which they structured a takeover, which left the Edinburgh team without a share of the rising valuation.
Mr Eccles stated that one thing he gained from the FanDuel experience was to choose financiers thoroughly.
He told BBC Scotland: "We took a lot of lessons from that, among which was the importance of who we choose as financiers in this new company, to guarantee their worths are aligned with ours, that they take their fiduciary responsibilities responsibly, and that they're the right partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US innovation firms, consisting of two big funds - Paradigm and FTX - which specialise in purchasing companies operating with crypto-currencies.
Varun Sudhakar, primary executive of BetDEX, stated: "The sports betting wagering market charges high prices for bad products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will effectively complete versus incumbents with a markedly exceptional item and low costs, which is now possible with the development of the ."
As chairman of the brand-new company, Mr Eccles said it could look familiar to retail punters used to existing online companies.
'Pool of skill'
However, he says that those who utilize its platform to run their own wagering companies will have the ability to innovate and develop a wider variety of sports betting items.
He stated the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX must enable that to fall listed below 1%.
The company will develop its own sports betting apps to operate on the platform.
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Mr Eccles said these would take an "intelligent, thoughtful" method to the way they are marketed to safeguard those who struggle with issue gaming.
He stated the team of around 500 software application engineers who assisted construct FanDuel from Scotland showed that it stays the location to construct a company. BetDEX has the exact same head of technology, Stuart Tonner.
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"A great deal of that [FanDuel] success was built on a highly proficient, really gifted engineering group, that constructed this product that could process millions of bets and millions of users.
"There's a genuine talent swimming pool of experienced engineers who assisted us build our product which's what we wish to utilize for BetDEX as well."
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Related topics
Edinburgh
sports betting wagering
More on this story
Paddy Power buys fantasy sports betting site
23 May 2018
FanDuel founder leaves business
Published
20 November 2017
1
Sports Betting Innovator Launches new Start up
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