sports betting wagering 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 effective technology groups is starting again with a new company - and has secured the greatest initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The has seed financing of $21m.
It intends to release a new open source software application platform, on which others can innovate in sports betting, in the very first half of next year.
The business is recruiting staff from a base in Scotland.
FanDuel was sold 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 dispute with FanDuel's later phase investors over the way in which they structured a takeover, which left the Edinburgh group without a share of the increasing valuation.
Mr Eccles stated that one thing he gained from the FanDuel experience was to pick financiers thoroughly.
He told BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we select as investors in this brand-new business, to ensure their worths are lined up with ours, that they take their fiduciary duties responsibly, and that they're the ideal 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 buying companies running with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering industry charges high costs for bad products and limits trades by its most successful users.
"BetDEX is diametrically opposed to this approach. We will successfully contend against incumbents with a markedly exceptional item and low costs, 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 firms.
'Pool of talent'
However, he says that those who use its platform to run their own sports betting firms will have the ability to innovate and create a wider variety of wagering products.
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He stated the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX should allow for that to fall listed below 1%.
The company will develop its own sports betting apps to run on the platform.
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Mr Eccles stated these would take an "intelligent, thoughtful" technique to the way they are marketed to secure those who have problem with issue gaming.
He said the group of around 500 software application engineers who assisted build FanDuel from Scotland revealed that it remains the location to build a firm. BetDEX has the same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was constructed on a highly competent, extremely talented engineering team, that constructed this product that might process countless bets and countless users.
"There's a genuine talent pool of knowledgeable engineers who helped us develop our item which's what we wish to take advantage of for BetDEX also."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power purchases fantasy sports betting website
23 May 2018
FanDuel founder leaves business
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Published
20 November 2017
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Sports Betting Innovator Launches new Start up
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