US firm's $11m in new funding will see Edinburgh workforce grow from 25 to 60 by the end of 2014
Technology firm FanDuel has secured $11 million (£6.9 million) in new investment.
FanDuel, a US-based daily fantasy sports game operator, has based its technology development team in Edinburgh.
The US parent company, FanDuel Inc, has secured financing from new investor Comcast Ventures - the venture capital affiliate of Comcast Corporation – along with existing investors Piton Capital, Pentech Ventures, Bullpen Capital and entrepreneur Richard Koch.
Scottish Enterprise has also invested in the UK subsidiary via the Scottish Investment Bank.
Andrew Cleland, a partner at Comcast Ventures, has also joined the FanDuel board.
The company said it expects to almost double its Edinburgh workforce this year, from 25 to a projected 42 and to 60 employees by the end of 2014.
Nigel Eccles, FanDuel’s founder and chief executive, said: “With this funding round, we set out to broaden our shareholder base and I am delighted to welcome Comcast Ventures as a new investor in FanDuel.
“Raising this additional funding will allow us to continue to innovate our daily fantasy sports product and considerably expand our user base.”
Fantasy sports are played on an entry fee basis with cash prizes on offer.
FanDuel points to a 2007 study which suggests nearly 30 million people play fantasy sports games in the United States and Canada.
In 2006 the US Federal Government passed into law the Unlawful Internet Gaming Enforcement Act, designed to prevent gambling over the internet.
FanDuel notes on its website fantasy sports is “considered a game of skill and received a specific exemption from the 2006 Unlawful Internet Gambling Enforcement Act”.
The company also notes: “In most States a game of skill is classed as a game where skill is the predominant factor in determining the winner.
“The states where our lawyers believe the law is unclear or questionable about the legality of fantasy sports are Arizona, Iowa, Louisiana, Montana or Vermont. Therefore we do not offer paid entry games to residents of those states.”
FanDuel claims on its website to have paid out $50 million in prizes in 2012.
In most recent abbreviated accounts for the 2011 year to December 31, 2011, the FanDuel Ltd subsidiary reported a loss of £3.16 million against a loss of £1.29 million the previous year.