sports betting wagering innovator launches brand-new start-up

17 November 2021
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By Douglas Fraser
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Business and economy editor, Scotland

Among Scotland's most effective technology teams is starting again with a brand-new firm - and has protected the most significant initial 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.

The brand-new company has seed financing of $21m.

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

The company is recruiting staff from a base in Scotland.
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FanDuel was sold to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.

However, Mr Eccles and other co-founders are in legal dispute with FanDuel's later phase financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the rising assessment.

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

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

The $21m seed financing for BetDEX includes stakes taken by 7 backers of US technology companies, consisting of two large funds - Paradigm and FTX - which specialise in investing in companies operating with crypto-currencies.

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

"BetDEX is diametrically opposed to this method. We will effectively compete against incumbents with a considerably superior item and low costs, which is now possible with the development of the blockchain innovation."

As chairman of the new company, Mr Eccles stated it could look familiar to retail punters used to existing online companies.

'Pool of talent'

However, he says that those who utilize its platform to run their own wagering firms will be able to innovate and develop a broader variety of sports betting products.

He said the typical share taken by online bookies is 7% to 10% of a stake, but BetDEX should permit that to fall listed below 1%.

The company will establish its own wagering apps to operate on the platform.

Mr Eccles said these would take an "smart, thoughtful" method to the way they are marketed to secure those who fight with issue sports betting.

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

"A great deal of that [FanDuel] success was constructed on a highly skilled, really talented engineering group, that built this product that might process countless bets and millions of users.

"There's a real skill swimming pool of experienced engineers who helped us construct our product which's what we wish to take advantage of for BetDEX also."

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Published

20 November 2017
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