Sports betting innovator launches 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 effective technology groups is beginning again with a brand-new firm - and has actually the greatest initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering website FanDuel in 2009 in Edinburgh.
The new firm has seed financing of $21m.
It aims to introduce a new open source software application platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The business is recruiting personnel from a base in Scotland.
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 remain in legal disagreement with FanDuel's later stage financiers over the method which they structured a takeover, which left the Edinburgh team without a share of the rising valuation.
Mr Eccles said that one thing he learned from the FanDuel experience was to select financiers thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we pick as financiers in this brand-new company, to guarantee their values are lined up with ours, that they take their fiduciary duties properly, which they're the right partners for us."
The $21m seed funding for BetDEX includes stakes taken by 7 backers of US innovation firms, consisting of two large funds - Paradigm and FTX - which specialise in purchasing business running with crypto-currencies.
Varun Sudhakar, primary executive of BetDEX, said: "The sports betting wagering market charges high costs for bad items and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will effectively compete versus incumbents with a markedly exceptional item and low fees, which is now possible with the introduction of the blockchain technology."
As chairman of the new firm, Mr Eccles stated it might look familiar to retail punters utilized to existing online companies.
'Pool of skill'
However, he says that those who use its platform to run their own wagering firms will have the ability to innovate and develop a wider series of sports betting products.
He said the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX ought to permit for that to fall listed below 1%.
The company will develop its own wagering apps to operate on the platform.
Mr Eccles said these would take an "smart, thoughtful" method to the method they are marketed to secure those who have problem with problem sports betting.
He stated the group of around 500 software application engineers who helped build FanDuel from Scotland showed that it remains the place to develop a firm. BetDEX has the exact same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was constructed on a highly competent, really talented engineering group, that built this item that could process countless bets and countless users.
"There's a real talent swimming pool of knowledgeable engineers who helped us construct our item and that's what we wish to utilize for BetDEX also."
Related subjects
Edinburgh
sports betting wagering
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FanDuel creator leaves business
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20 November 2017
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Sports Betting Innovator Launches Brand new Start up
fred37d9547757 edited this page 2025-01-02 09:07:29 +00:00