Solana-Based Sports Betting Protocol BetDEX Closes $21M Seed Funding Round

Crypto exchange FTX and crypto investment firm Paradigm led the raise, which included a number of prominent venture capital firms.

AccessTimeIconNov 17, 2021 at 10:37 p.m. UTC
Updated Nov 18, 2021 at 1:52 a.m. UTC

Eli is a news reporter for CoinDesk. He holds ETH, SOL and AVAX.

BetDEX has raised a $21 million seed round to create a decentralized global sports betting protocol.

In the announcement Wednesday, the Edinburgh-based BetDEX called the raise the “largest-ever seed investment round by a U.K. startup.”

Exchange giant FTX and San Francisco-based crypto venture firm Paradigm led the round, which also included participation from Lightspeed Venture Partners, Sino Global Capital and Solana Ventures.

Scotland-based BetDEX is building its protocol on the Solana blockchain with hopes of becoming “a global clearinghouse for sports wagering,” according to a blog post.

Third parties will be able to use BetDEX’s back-end infrastructure to run their betting platforms, which takes advantage of Solana’s high transaction speeds and low fees. BetDEX says its protocol will charge a fee of less than 1% on net winnings, undercutting centralized competitors like FanDuel and DraftKings who typically charge 2%-5%.

The company also plans to build its own betting platform on the protocol, which has yet to be named. BetDEX will accept wagers in USDT, SOL and SAMO at launch, according to the announcement.

The company is led by three former executives of FanDuel, which holds 36% of the current online sports betting market share. Nigel Eccles, who serves as BetDEX’s non-executive chair, is a FanDuel co-founder and served as the company’s CEO.

With the U.S. crypto betting market still in its infancy, BetDEX is targeting European and Asian markets, a company spokesperson told CoinDesk. Wyoming is currently the only U.S. state with legalized cryptocurrency sports betting.

“It is mind-boggling that more sports wagering does not occur on exchanges,” FTX CEO Sam Bankman-Fried said in the BetDEX press release. “We firmly believe in giving consumers the ability and control to set their own price and are excited to partner with BetDEX to bring this vision to fruition.”


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eli is a news reporter for CoinDesk. He holds ETH, SOL and AVAX.

CoinDesk - Unknown

Eli is a news reporter for CoinDesk. He holds ETH, SOL and AVAX.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC