How FanDuel grew from humble Scottish startup into an American fantasy sports giant

The daily fantasy sports (DFS) industry has taken one hell of a beating these past seven months, with states from New York and Illinois to Nevada concluding that “betting” on virtual sports teams compiled from real pro and college athletes may not be a game of skill after all — it could be illegal gambling.

The two most prominent players in the saga have been Boston-based DraftKings — founded in 2011 and with $445 million in VC cash to its name so far — and FanDuel, which has raised north of $360 million in financing since its inception in 2009. The DFS industry in North America sits in something of an awkward position, with some states declaring it illegal gambling, some passing new legislation to accommodate it, and some still to make their minds up either way. And this surely can’t be good for business.