sports betting wagering innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most effective innovation teams is starting once again with a new firm - and has protected the greatest preliminary financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting site FanDuel in 2009 in Edinburgh.
The brand-new company has seed funding of $21m.
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It aims to introduce a brand-new open source software application platform, on which others can innovate in sports betting, in the very first half of next year.
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The business is hiring personnel from a base in Scotland.
FanDuel was offered 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 phase investors over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing appraisal.
Mr Eccles said that one thing he found out from the FanDuel experience was to select financiers carefully.
He told BBC Scotland: "We took a great deal of lessons from that, among which was the value of who we choose as investors in this brand-new service, to ensure their worths are aligned with ours, that they take their fiduciary responsibilities responsibly, which they're the right partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US technology firms, including 2 large funds - Paradigm and FTX - which specialise in purchasing companies operating with crypto-currencies.
Varun Sudhakar, primary executive of BetDEX, stated: "The sports betting market charges high rates for poor products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will effectively contend versus incumbents with a noticeably remarkable item and low costs, which is now possible with the advent of the blockchain innovation."
As chairman of the brand-new company, Mr Eccles said it could look familiar to retail punters utilized to existing online companies.
'Pool of skill'
However, he says that those who utilize its platform to run their own wagering companies will be able to innovate and create a larger variety of sports betting items.
He said the common share taken by online bookmakers is 7% to 10% of a stake, however BetDEX ought to enable for that to fall below 1%.
The company will establish its own sports betting apps to operate on the platform.
Mr Eccles stated these would take an "smart, thoughtful" technique to the method they are marketed to secure those who battle with problem gambling.
He stated the group of around 500 software engineers who assisted construct FanDuel from Scotland showed that it remains the location to develop a company. BetDEX has the same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was built on an proficient, really skilled engineering group, that developed this product that could process millions of bets and millions of users.
"There's a real skill pool of knowledgeable engineers who helped us build our item and that's what we want to leverage for BetDEX also."
Related topics
Edinburgh
sports betting wagering
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Sports Betting Innovator Launches new Start-up
lorrinedempsey edited this page 2025-01-02 11:00:59 +01:00