sports betting wagering innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
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One of Scotland's most effective technology teams is starting once again with a new company - and has secured the greatest preliminary investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding of $21m.
It aims 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 recruiting staff from a base in Scotland.
FanDuel was offered to Flutter - formerly named 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 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 carefully.
He informed BBC Scotland: "We took a great deal of lessons from that, one of which was the significance of who we choose as financiers in this brand-new business, to guarantee their worths are aligned with ours, that they take their fiduciary duties responsibly, and that they're the ideal partners for us."
The $21m seed funding for BetDEX consists of stakes taken by seven backers of US innovation companies, consisting of 2 large funds - Paradigm and FTX - which specialise in investing in business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting market charges high prices for poor products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this approach. We will successfully contend versus incumbents with a considerably superior item and low costs, which is now possible with the arrival of the blockchain technology."
As chairman of the brand-new firm, Mr Eccles stated it might look familiar to retail punters used to existing online companies.
'Pool of talent'
However, he says that those who use its platform to run their own wagering firms will be able to innovate and develop a broader series of sports betting items.
He said the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX needs to enable for that to fall below 1%.
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The company will develop its own sports betting apps to run on the platform.
Mr Eccles said these would take an "intelligent, thoughtful" technique to the method they are marketed to safeguard those who have a hard time with issue gaming.
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He said the group of around 500 software application engineers who helped develop FanDuel from Scotland revealed that it stays the location to develop a firm. BetDEX has the exact same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was built on a highly skilled, really talented engineering team, that this product that could process millions of bets and millions of users.
"There's a genuine skill pool of skilled engineers who helped us build our product and that's what we want to take advantage of for BetDEX as well."
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Paddy Power purchases fantasy sports betting site
23 May 2018
FanDuel founder leaves business
Published
20 November 2017
1
Sports Betting Innovator Launches Brand new Start up
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