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sports betting wagering innovator launches new start-up
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17 November 2021
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By Douglas Fraser
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Business and economy editor, Scotland
One of Scotland's most effective innovation teams is beginning again with a brand-new company - and has actually protected the most significant initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting site FanDuel in 2009 in Edinburgh.
The new company has seed funding of $21m.
It aims to introduce 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 hiring staff from a base in Scotland.
FanDuel was sold to Flutter - formerly called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal conflict with FanDuel's later phase investors over the method which they structured a takeover, which left the Edinburgh team without a share of the rising evaluation.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to select financiers thoroughly.
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He told BBC Scotland: "We took a great deal of lessons from that, among which was the value of who we pick as investors in this brand-new organization, to guarantee their values are aligned 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 innovation companies, including 2 large funds - Paradigm and FTX - which specialise in investing in business operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering industry charges high costs for bad items and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this technique. We will effectively compete versus incumbents with a considerably remarkable item and low fees, which is now possible with the introduction of the blockchain technology."
As chairman of the brand-new firm, 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 sports betting companies will be able to innovate and create a broader range of wagering products.
He said the normal share taken by online bookies is 7% to 10% of a stake, but BetDEX should enable that to fall below 1%.
The business will develop its own sports betting apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" method to the way they are marketed to secure those who deal with problem gaming.
He stated the team of around 500 software engineers who helped develop FanDuel from Scotland showed that it stays the location to construct a firm. BetDEX has the very same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on an extremely knowledgeable, extremely talented engineering team, that developed this product that might process countless bets and users.
"There's a real skill pool of knowledgeable engineers who helped us develop our item and that's what we wish to take advantage of for BetDEX as well."
Related subjects
Edinburgh
sports betting wagering
More on this story
Paddy Power purchases fantasy sports betting site
23 May 2018
FanDuel creator leaves business
Published
20 November 2017
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Sports Betting Innovator Launches new Start up
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