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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
One of Scotland's most effective innovation groups is starting once again with a new firm - and has protected the most significant initial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The new company has seed financing of $21m.
It aims to launch a brand-new open source software platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The business is hiring staff from a base in Scotland.
FanDuel was offered to formerly called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal dispute with FanDuel's later stage financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the rising appraisal.
Mr Eccles stated that one thing he learned from the FanDuel experience was to pick investors carefully.
He informed BBC Scotland: "We took a great deal of lessons from that, one of which was the value of who we select as investors in this new organization, to ensure their worths are aligned with ours, that they take their fiduciary duties responsibly, and that they're the ideal partners for us."
The $21m seed funding for BetDEX consists of stakes taken by 7 backers of US technology firms, including 2 big funds - Paradigm and FTX - which specialise in investing in companies operating with crypto-currencies.
Varun Sudhakar, primary executive of BetDEX, stated: "The sports betting wagering market charges high costs for bad products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this approach. We will effectively contend against incumbents with a markedly superior item and low fees, which is now possible with the advent of the blockchain technology."
As chairman of the new company, Mr Eccles stated it could look familiar to retail punters utilized to existing online firms.
'Pool of skill'
However, he says that those who utilize its platform to run their own sports betting companies will be able to innovate and develop a larger series of wagering products.
He said the common share taken by online bookies is 7% to 10% of a stake, but BetDEX needs to permit that to fall listed below 1%.
The company will develop its own wagering apps to run on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" method to the way they are marketed to safeguard those who struggle with issue sports betting.
He said the group of around 500 software application engineers who assisted develop FanDuel from Scotland revealed that it stays the place to construct a company. BetDEX has the same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was constructed on an extremely knowledgeable, very skilled engineering team, that developed this product that might process millions of bets and millions of users.
"There's a real talent pool of experienced engineers who assisted us construct our item and that's what we wish to utilize for BetDEX also."
Related topics
Edinburgh
sports betting wagering
More on this story
Paddy Power buys dream sports betting website
23 May 2018
FanDuel founder leaves business
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20 November 2017
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Sports Betting Innovator Launches Brand new Start up
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