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
One of Scotland's most successful technology teams is beginning again with a new firm - and has protected the most significant preliminary 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 brand-new company has seed funding of $21m.
It intends to introduce a brand-new open source software application platform, on which others can innovate in sports betting wagering, in the first half of next year.
The business is recruiting staff from a base in Scotland.
FanDuel was offered to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal disagreement with FanDuel's later phase investors over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing appraisal.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to select investors thoroughly.
He informed BBC Scotland: "We took a great deal of lessons from that, one of which was the importance of who we select as investors in this new business, to ensure their worths are lined up with ours, that they take their fiduciary duties responsibly, which they're the best partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US technology firms, including 2 big funds - Paradigm and FTX - which specialise in buying business running with crypto-currencies.
Varun Sudhakar, chief 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 approach. We will successfully complete against incumbents with a significantly superior product and low charges, which is now possible with the advent of the blockchain innovation."
As chairman of the new firm, Mr Eccles stated it might look familiar to retail punters utilized to existing online firms.
'Pool of skill'
However, he states that those who use its platform to run their own wagering companies will have the ability to innovate and create a broader variety of wagering items.
He stated the typical share taken by online bookies is 7% to 10% of a stake, but BetDEX should enable for that to fall listed below 1%.
The business will develop its own wagering apps to operate on the platform.
Mr Eccles stated these would take an "smart, thoughtful" approach to the method they are marketed to secure those who fight with issue gaming.
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He stated the group of around 500 software application engineers who assisted 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 built on a highly skilled, really talented engineering team, that constructed this product that could process millions of bets and millions of users.
"There's a genuine skill pool of knowledgeable engineers who helped us construct our item which's what we wish to leverage for BetDEX too."
Related topics
Edinburgh
sports betting wagering
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Published
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Sports Betting Innovator Launches Brand new Start up
Norris Till edited this page 3 months ago