sports betting wagering innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
bit.ly
Business and economy editor, Scotland
One of Scotland's most effective technology groups is starting once 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 website FanDuel in 2009 in Edinburgh.
The brand-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, in the first half of next year.
The business is recruiting staff from a base in Scotland.
FanDuel was sold to Flutter - formerly named 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 stage financiers over the method which they structured a takeover, which left the Edinburgh team without a share of the increasing valuation.
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Mr Eccles stated that a person thing he found out from the FanDuel experience was to choose investors carefully.
He informed BBC Scotland: "We took a lot of lessons from that, one of which was the value of who we select as financiers in this brand-new company, to ensure their values are aligned with ours, that they take their fiduciary duties properly, which they're the ideal partners for us."
The $21m for BetDEX includes stakes taken by 7 backers of US innovation firms, consisting of 2 large 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 poor products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will successfully contend against incumbents with a considerably remarkable product and low charges, which is now possible with the development 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.
'Pool of talent'
However, he says that those who utilize its platform to run their own wagering firms will be able to innovate and produce a wider series of wagering products.
He stated the typical share taken by online bookmakers is 7% to 10% of a stake, however BetDEX should enable for that to fall below 1%.
The business will develop its own wagering apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" technique to the way they are marketed to secure those who battle with issue gambling.
He stated the group of around 500 software engineers who assisted construct FanDuel from Scotland showed that it stays the location to develop a company. BetDEX has the exact same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on a highly experienced, very skilled engineering group, that built this product that could process countless bets and countless users.
"There's a real talent pool of experienced engineers who helped us construct our item which's what we desire to leverage for BetDEX as well."
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1
Sports Betting Innovator Launches new Start-up
louiegage42067 edited this page 2025-01-01 23:47:42 +00:00