sports betting wagering innovator launches new start-up
17 November 2021
bit.ly
Share
close panel
Share page
Copy link
About sharing
By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most effective technology teams is beginning again with a brand-new firm - and has secured the most significant preliminary financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting site FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding 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 company is hiring staff from a base in Scotland.
FanDuel was sold to Flutter - previously named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal conflict with FanDuel's later stage investors 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 gained from the FanDuel experience was to choose financiers thoroughly.
He informed BBC Scotland: "We took a great deal of lessons from that, among which was the importance of who we choose as investors in this brand-new company, to guarantee their worths are lined up with ours, that they take their fiduciary responsibilities properly, which they're the ideal partners for us."
The $21m seed funding for BetDEX includes stakes taken by seven backers of US innovation companies, including 2 large funds - Paradigm and FTX - which specialise in purchasing business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting market charges high costs for poor items and limitations trades by its most effective users.
bit.ly
"BetDEX is diametrically opposed to this technique. We will successfully compete against incumbents with a markedly exceptional product and low fees, which is now possible with the advent of the blockchain innovation."
As chairman of the brand-new company, Mr Eccles stated it could look familiar to retail punters used to existing online firms.
'Pool of skill'
However, he says that those who use its platform to run their own sports betting companies will have the ability to innovate and develop a larger variety of sports betting products.
He said the typical share taken by online bookies is 7% to 10% of a stake, but BetDEX ought to permit that to fall listed below 1%.
The company 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 protect those who have a hard time with problem gaming.
He stated the group of around 500 software application engineers who assisted develop FanDuel from Scotland revealed that it remains the place to construct a firm. BetDEX has the same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on an extremely competent, very skilled engineering group, that developed this product that might process countless bets and millions of users.
"There's a genuine skill swimming pool of experienced engineers who helped us construct our product which's what we wish to take advantage of for BetDEX too."
Related topics
Edinburgh
sports betting wagering
More on this story
Paddy Power purchases fantasy sports betting website
23 May 2018
leaves business
Published
20 November 2017
bet9ja.com
1
Sports Betting Innovator Launches new Start-up
deanakuester23 edited this page 2025-01-02 07:14:35 +00:00