sports betting wagering innovator launches new start-up

17 November 2021

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By Douglas Fraser

Business and economy editor, Scotland

One of Scotland's most effective innovation teams is starting again with a brand-new firm - and has protected the biggest preliminary investment of any British start-up business.

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

The new company has seed financing 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 hiring personnel 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 are 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 appraisal.
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Mr Eccles stated that a person thing he learned from the FanDuel experience was to pick financiers thoroughly.

He told BBC Scotland: "We took a lot of lessons from that, one of which was the significance of who we pick as investors in this brand-new service, to guarantee their worths are lined up with ours, that they take their fiduciary tasks properly, which they're the best partners for us."
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The $21m seed funding for BetDEX consists of stakes taken by seven backers of US technology firms, including two large funds - Paradigm and FTX - which specialise in investing in companies running with crypto-currencies.

Varun Sudhakar, primary executive of BetDEX, stated: "The sports betting market charges high prices for poor items and limitations trades by its most effective users.

"BetDEX is diametrically opposed to this approach. We will effectively contend against incumbents with a noticeably exceptional item and low fees, 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 states that those who use its platform to run their own wagering firms will be able to innovate and develop a wider series of sports betting products.

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

The company will establish 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 fight with issue gaming.

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

"A great deal of that [FanDuel] success was constructed on a highly competent, extremely talented engineering team, that developed this product that could bets and millions of users.

"There's a real skill pool of knowledgeable engineers who helped us build our item which's what we want to take advantage of for BetDEX also."

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