Fantasy Sports Biz FanDuel.com Becomes the Biggest Tech Startup in UK
Guess which Edinburgh company is now the largest UK startup tech firm. Would you believe it’s none other than Fantasy Football behemoth FanDuel.com?
That’s right. A company begun by a group of Edinburgh University graduates in 2009 has managed to garner $88 million from venture capitalists. These include Shamrock Capital Advisors, previous owners of the Harlem Globetrotters.
Nigel Eccles, CEO and Co-Founder of FanDuel, said in Forbes: “We couldn’t be more pleased to be able to make this announcement at the start of football season, as more users begin to embrace the one-day fantasy experience.”
In fact, it’s hard to watch NFL games this season without seeing an advertisement or mention of Fantasy Sports leagues.
FanDuel.com’s daily Fantasy concept is more akin to gambling than the old familiar season-long leagues.
Lizzi Connaughton of Scotland’s student newspaper, the Journal, notes, that, “in contrast with season-long bouts, daily fantasy sports contests tend to last a day or one weekend. The contests are fast-paced, numbers-driven and provide instant gratification for participants”.
Fantasy Sports contests were also exempt from federal online gambling prohibition signed into law in late 2006 along with horse racing and sanctioned lotteries. Some state laws do prohibit certain components of Daily Fantasy Sports activities, which in turn has prompted most sites to restrict residents of specified jurisdictions. These vary from site to site, however.
In Kansas, for example, Fantasy Football is widely viewed as unlawful based on state statute 21-6404 that stipulates: "As with any other illegal gambling matter, if a fantasy sports league involves the elements of a prize, chance and consideration then it is an illegal 'lottery' prohibited by Kansas criminal law."
Connaughton points out that daily fantasy sports have quickly become so popular, an increase of 600,000 players was expected this year, even without the participation of all 50 states. Those numbers are simply astonishing.
- Aaron Goldstein, Gambling911.com
