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Sports betting innovator launches brand-new start-up

17 November 2021

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By Douglas Fraser

Business and economy editor, Scotland

Among Scotland's most effective innovation groups is starting again with a new company - and has actually protected the greatest preliminary financial investment of any British start-up business.

BetDEX is being led by Nigel Eccles, who sports betting site FanDuel in 2009 in Edinburgh.

The new firm has seed financing of $21m.

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

The company is hiring staff 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 remain in legal conflict with FanDuel's later stage investors over the method in which they structured a takeover, which left the Edinburgh group without a share of the rising evaluation.

Mr Eccles said that a person thing he found out from the FanDuel experience was to choose financiers thoroughly.

He told BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we select as financiers in this brand-new business, to guarantee their worths are lined up with ours, that they take their fiduciary tasks responsibly, and that they're the ideal partners for us."

The $21m seed financing for BetDEX consists of stakes taken by seven backers of US innovation companies, consisting of 2 large funds - Paradigm and FTX - which specialise in buying business running with crypto-currencies.
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Varun Sudhakar, primary executive of BetDEX, said: "The sports betting wagering industry charges high costs for bad items and limitations trades by its most successful users.

"BetDEX is diametrically opposed to this technique. We will successfully contend versus incumbents with a considerably exceptional item and low charges, which is now possible with the introduction of the blockchain innovation."

As chairman of the brand-new company, Mr Eccles stated it could look familiar to retail punters utilized to existing online firms.

'Pool of skill'

However, he states that those who use its platform to run their own sports betting companies will be able to innovate and produce a wider variety of wagering items.

He said the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX should permit for 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 method they are marketed to protect those who have problem with issue gaming.

He stated the team of around 500 software application engineers who assisted develop FanDuel from Scotland revealed that it remains the location to develop a firm. BetDEX has the very same head of innovation, Stuart Tonner.

"A great deal of that [FanDuel] success was built on an extremely proficient, really talented engineering team, that constructed this product that might process millions of bets and millions of users.

"There's a real talent pool of skilled engineers who assisted us build our product which's what we wish to utilize for BetDEX too."

Related subjects

Edinburgh

sports betting wagering

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Published

20 November 2017
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