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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
Among Scotland's most teams is beginning once again with a brand-new company - and has secured the biggest initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting website FanDuel in 2009 in Edinburgh.
The new firm has seed financing of $21m.
It aims to release a new open source software platform, on which others can innovate in sports betting wagering, in the first half of next year.
The company is hiring 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.
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However, Mr Eccles and other co-founders remain in legal disagreement with FanDuel's later stage investors over the method which they structured a takeover, which left the Edinburgh group without a share of the rising appraisal.
Mr Eccles stated that a person thing he found out from the FanDuel experience was to select financiers thoroughly.
He informed BBC Scotland: "We took a great deal of lessons from that, one of which was the value of who we pick as investors in this brand-new business, to ensure their worths are aligned with ours, that they take their fiduciary tasks properly, which they're the ideal partners for us."
The $21m seed financing for BetDEX consists of stakes taken by seven backers of US innovation companies, including 2 large funds - Paradigm and FTX - which specialise in purchasing companies running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering industry charges high costs for poor items and limits trades by its most effective users.
"BetDEX is diametrically opposed to this technique. We will successfully contend against incumbents with a significantly superior item and low costs, which is now possible with the development of the blockchain innovation."
As chairman of the new firm, 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 wagering firms will have the ability to innovate and create a wider series of sports betting items.
He said the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX must permit that to fall listed below 1%.
The business will establish its own wagering apps to run on the platform.
Mr Eccles said these would take an "intelligent, thoughtful" technique to the way they are marketed to safeguard those who struggle with problem sports betting.
He said the team of around 500 software application engineers who helped develop FanDuel from Scotland revealed that it stays the location to construct a company. BetDEX has the exact same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on an extremely knowledgeable, really gifted engineering group, that built this item that could process millions of bets and countless users.
"There's a genuine skill pool of skilled engineers who assisted us build our item and that's what we want to take advantage of for BetDEX too."
Related subjects
Edinburgh
Sports betting
More on this story
Paddy Power purchases fantasy sports betting website
23 May 2018
FanDuel founder leaves company
Published
20 November 2017
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Sports Betting Innovator Launches new Start up
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