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Sports betting innovator start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most successful innovation groups is starting once again with a brand-new company - and has protected the most significant initial investment of any British start-up company.
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BetDEX is being led by Nigel Eccles, who co-founded dream sports betting website FanDuel in 2009 in Edinburgh.
The brand-new company has seed financing of $21m.
It aims to introduce a brand-new open source software platform, on which others can innovate in sports betting, in the first half of next year.
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The company is recruiting staff from a base in Scotland.
FanDuel was sold to Flutter - formerly called 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 stage financiers over the way in which they structured a takeover, which left the Edinburgh group without a share of the increasing assessment.
Mr Eccles said that a person thing he found out from the FanDuel experience was to choose investors carefully.
He told BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we select as financiers in this new business, to ensure their values are aligned with ours, that they take their fiduciary tasks responsibly, which they're the best partners for us."
The $21m seed funding for BetDEX includes stakes taken by seven backers of US technology firms, consisting of 2 large funds - Paradigm and FTX - which specialise in purchasing business operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting market charges high rates for poor items and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will successfully contend versus incumbents with a significantly exceptional product and low charges, which is now possible with the advent of the blockchain technology."
As chairman of the brand-new company, Mr Eccles stated it might look familiar to retail punters used to existing online companies.
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'Pool of skill'
However, he states that those who use its platform to run their own wagering companies will be able to innovate and produce a broader 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 enable that to fall below 1%.
The business will develop its own sports betting apps to run on the platform.
Mr Eccles stated these would take an "smart, thoughtful" technique to the way they are marketed to secure those who battle with problem gaming.
He said the group of around 500 software application engineers who helped build FanDuel from Scotland revealed that it stays the location to build a company. BetDEX has the exact same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was developed on a highly skilled, extremely talented engineering group, that developed this product that could process countless bets and countless users.
"There's a genuine skill pool of experienced engineers who assisted us develop our item which's what we desire to utilize for BetDEX too."
Related topics
Edinburgh
Sports betting
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Paddy Power purchases fantasy sports betting website
23 May 2018
FanDuel founder leaves business
Published
20 November 2017
1
Sports Betting Innovator Launches Brand-new Start-up
natelemmone21 edited this page 2025-01-02 16:14:40 +09:00