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FanDuel secures $11m in funding

FANTASY sports game provider FanDuel has raised $11 million (£7m) in its latest funding round.

The business, founded in 2009 in Scotland, is based across New York and Edinburgh and now employs more than 40 people.

It has exploited a niche in the US where daily fantasy sports games are exempt under online betting laws as they are classified as games of skill rather than chance.

FanDuel Players compete in fantasy sports leagues across a single set of fixtures covering American football, baseball, hockey and basketball.

The company said it is paying out around $2m in prizes and has 250,000 entries each week.

It has previously raised around $7m from investors.

The latest round has brought in money from new backer Comcast Ventures plus additional support from existing investors Piton Capital, Pentech Ventures, Bullpen Capital, Scottish Enterprise and Richard Koch.

Andrew Cleland, from Comcast Ventures, will join the FanDuel board and said: "FanDuel has done an exceptional job in establishing itself as the leading player in the next generation of fantasy sports. We see a clear opportunity to introduce the game to a broader set of sports fans and I'm excited to begin working with the company."

Nigel Eccles, FanDuel co-founder, said: "Raising this additional funding will allow us to continue to innovate our daily fantasy sports product and considerably expand our user base."

Mr Eccles and his team were previously involved in online prediction and trading game provider Hubdub.

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