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Sports betting innovator launches brand-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 groups is beginning once again with a brand-new firm - and has protected the greatest initial financial investment of any British start-up company.

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

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

The company is hiring personnel from a base in Scotland.

FanDuel was offered to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.

However, Mr Eccles and other co-founders remain in legal disagreement with FanDuel's later stage financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing appraisal.

Mr Eccles stated that a person thing he discovered from the was to pick investors thoroughly.

He told BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we select as investors in this new organization, to ensure their worths are aligned with ours, that they take their fiduciary responsibilities responsibly, and that they're the best partners for us."

The $21m seed funding for BetDEX consists of stakes taken by 7 backers of US technology companies, including 2 big funds - Paradigm and FTX - which specialise in buying companies operating with crypto-currencies.

Varun Sudhakar, president of BetDEX, said: "The sports betting wagering industry charges high prices for bad products and limitations trades by its most effective users.

"BetDEX is diametrically opposed to this approach. We will effectively contend against incumbents with a considerably remarkable product and low costs, which is now possible with the introduction 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 skill'

However, he says that those who utilize its platform to run their own wagering companies will have the ability to innovate and develop a wider series of wagering items.

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

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

Mr Eccles stated these would take an "smart, thoughtful" approach to the method they are marketed to protect those who battle with problem gambling.

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

"A lot of that [FanDuel] success was developed on an extremely competent, very talented engineering team, that developed this item that could process countless bets and countless users.

"There's a real talent pool of skilled engineers who helped us develop our product and that's what we wish to take advantage of for BetDEX as well."

Related topics

Edinburgh

Sports betting

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Paddy Power purchases dream sports betting site

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FanDuel founder leaves company
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Published

20 November 2017
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