Sports betting innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most effective innovation groups is beginning again with a brand-new firm - and has protected the most significant initial investment of any British start-up company.
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BetDEX is being led by Nigel Eccles, who co-founded dream sports betting site FanDuel in 2009 in Edinburgh.
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The brand-new company has seed financing of $21m.
It intends to release a brand-new open source software application platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The business is recruiting staff from a base in Scotland.
FanDuel was offered to Flutter - formerly called 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 rising appraisal.
Mr Eccles stated that one thing he gained from the FanDuel experience was to pick financiers carefully.
He told BBC Scotland: "We took a lot of lessons from that, one of which was the value of who we choose as investors in this new company, to guarantee their values are aligned with ours, that they take their fiduciary responsibilities properly, and that they're the ideal partners for us."
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The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US technology firms, consisting of two large funds - Paradigm and FTX - which specialise in buying business operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting industry charges high rates for poor items and limits trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully compete versus incumbents with a significantly exceptional item and low charges, which is now possible with the development of the blockchain technology."
As chairman of the new firm, Mr Eccles stated it could look familiar to retail punters utilized to existing online companies.
'Pool of talent'
However, he says that those who use its platform to run their own sports betting companies will have the ability to innovate and create a larger series of wagering items.
He stated the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX should permit that to fall below 1%.
The company will develop its own wagering apps to operate on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" approach to the way they are marketed to safeguard those who fight with problem gaming.
He said the team of around 500 software engineers who assisted build FanDuel from Scotland showed that it stays the place to construct a firm. BetDEX has the exact same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on a highly knowledgeable, very team, that developed this product that could process millions of bets and millions of users.
"There's a genuine talent swimming pool of experienced engineers who helped us construct our product which's what we desire to take advantage of for BetDEX as well."
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Paddy Power buys fantasy sports betting website
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FanDuel founder leaves company
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1
Sports Betting Innovator Launches new Start-up
nicolasarmer8 edited this page 2025-01-02 10:36:52 +08:00