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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

One of Scotland's most successful technology teams is beginning once again with a - and has secured the most significant preliminary investment of any British start-up company.

BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering website FanDuel in 2009 in Edinburgh.
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The brand-new firm has seed funding of $21m.

It intends to release a new open source software platform, on which others can innovate in sports betting, in the very first half of next year.

The business is hiring personnel 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 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 assessment.

Mr Eccles said that a person thing he discovered from the FanDuel experience was to select investors thoroughly.

He informed BBC Scotland: "We took a great deal of lessons from that, one of which was the value of who we choose as investors in this new organization, to ensure their worths are lined up with ours, that they take their fiduciary tasks properly, which they're the best partners for us."

The $21m seed financing for BetDEX includes stakes taken by seven backers of US technology companies, including two large funds - Paradigm and FTX - which specialise in buying companies running with crypto-currencies.

Varun Sudhakar, president of BetDEX, said: "The sports betting wagering industry charges high costs for poor items and limitations trades by its most successful users.

"BetDEX is diametrically opposed to this method. We will effectively contend versus incumbents with a considerably superior product and low charges, which is now possible with the introduction of the blockchain innovation."

As chairman of the new firm, Mr Eccles said it might look familiar to retail punters utilized to existing online firms.

'Pool of skill'

However, he says that those who use its platform to run their own wagering companies will have the ability to innovate and produce a wider variety of sports betting products.

He said the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX should enable that to fall below 1%.

The business will establish its own sports betting apps to operate on the platform.

Mr Eccles stated these would take an "intelligent, thoughtful" technique to the method they are marketed to secure those who deal with problem gaming.

He said the group of around 500 software application engineers who assisted build FanDuel from Scotland revealed that it stays the place to construct a company. BetDEX has the same head of technology, Stuart Tonner.

"A great deal of that [FanDuel] success was developed on an extremely proficient, very skilled engineering group, that built this item that could process countless bets and countless users.

"There's a genuine talent pool of skilled engineers who assisted us construct our item and that's what we desire to utilize for BetDEX also."

Related topics

Edinburgh

Sports betting

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Published

20 November 2017
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