A SCOTTISH fantasy sports operator has received a huge boost after US-lawmakers have potentially lifted a ban on its operations.
Edinburgh-based firm FanDuel, which employs nearly 500 people in Scotland and the US, allows players to pick a team of sports stars and compete against other fans to win cash prizes.
Founded in 2009, it is one of Scotland's fastest growing tech firms and has been dubbed a 'unicorn', a term for startups with a valuation of more then $1 billion.
It has more than one million active users and is a major player in the American daily fantasy sports market, where it concentrates its operations.
Despite its success it has faced regulatory challenges in the US, with some states declaring that daily fantasy sports are a form of gambling and illegal.
Its operations had been suspended in New York, Texas and Nevada pending further legal clarity, while a number of other states are reviewing their legislature on legal sports betting.
The company's auditor, Deloitte, said potential bans cast "significant doubt" over the company's ability to continue as a going concern.
However the company has now been given a lifeline with new legislation in New York state clarifying the legality of fantasy sports companies with a new fantasy sports bill.
Should the bill be passed, it would protect the operation of fantasy sports companies, while installing a number of consumer protections operators must adhere to.
The bill is now with the governor of New York, Andrew Cuomo, who has 10 days to sign it into law or veto it.
It follows six other legislative bodies — Colorado, Indiana, Mississippi, Missouri, Tennessee and Virginia — which have introduced legislature to pass a bill relating to daily fantasy sports this year, however New York is seen to be one of the industry's biggest markets.
Nigel Eccles, co-founder and CEO of FanDuel, said fantasy sports fans had rallied in New York with "more than 100,000 emails and thousands of phone calls to legislators" which
represents a "thoughtful legislative process, where bi-partisanship and willingness to compromise carried the day."
He said: "We decided long ago to build FanDuel in New York because it's the sports capital of the world and a thriving home for tech startups — a natural fit for fantasy sports.
"Our success is due in no small part to the people, infrastructure, partnerships and opportunities here, which very few locations in the world can offer.
"New York is the seventh state to pass a fantasy sports bill just this year — frankly a remarkable amount of progress in a short period of time.
"It speaks to the popularity of our game, the passion and advocacy efforts of our fans and the immense potential states are seeing in the fantasy sports industry."
He added that he was "extremely hopeful" that Governor Cuomo would sign the bill.
The move comes as intends to launch its maiden UK product in time for the new English Premier League football season in August.
It has recently also been subject to speculation of a merger with US rival DraftKings, which is believed to have as many as 41 millions players.
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