Sports betting innovator launches brand-new start-up
17 November 2021
Share
close panel
Share page
Copy link
About sharing
By Douglas Fraser
bet9ja.com
Business and economy editor, Scotland
One of Scotland's most effective technology teams is beginning once again with a brand-new company - and has actually 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 wagering site FanDuel in 2009 in Edinburgh.
The new company has seed funding of $21m.
It aims to release a brand-new open source software application platform, on which others can innovate in sports betting wagering, in the first half of next year.
The business is recruiting personnel from a base in Scotland.
FanDuel was offered to Flutter - previously named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
bit.ly
However, Mr Eccles and other co-founders are in legal dispute with FanDuel's later stage investors over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing valuation.
Mr Eccles said that a person thing he gained from the FanDuel experience was to choose investors carefully.
He told 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 values are aligned with ours, that they take their fiduciary tasks responsibly, and that they're the best partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US technology companies, including two large funds - Paradigm and FTX - which specialise in operating with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, said: "The sports betting wagering market charges high prices for bad products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully compete against incumbents with a markedly exceptional item and low fees, which is now possible with the advent of the blockchain technology."
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 firms will be able to innovate and produce a wider series of wagering items.
He stated the common share taken by online bookies is 7% to 10% of a stake, but BetDEX needs to permit for that to fall below 1%.
The business will develop its own sports betting apps to operate on the platform.
Mr Eccles said these would take an "smart, thoughtful" technique to the way they are marketed to secure those who fight with issue gaming.
He stated the team of around 500 software application engineers who helped develop FanDuel from Scotland revealed that it remains the place to build a firm. BetDEX has the same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was built on an extremely proficient, really skilled engineering team, that developed this item that could process millions of bets and countless users.
"There's a real talent swimming pool of skilled engineers who helped us construct our product which's what we wish to take advantage of for BetDEX too."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power purchases fantasy sports betting site
23 May 2018
FanDuel founder leaves company
Published
20 November 2017
bet9ja.com
1
Sports Betting Innovator Launches new Start up
kristinwoodley edited this page 3 weeks ago