DraftKings raises $41m in successful funding round

The daily cash fantasy site DraftKings has raised $41m in its latest venture funding round, bringing its total outside investments to $75m.

The lead investor was merchant bank The Raine Group.

"Daily fantasy sports represents a tremendous area for growth in the multi-billion dollar world of fantasy sports, and Raine is pleased to lead this investment round for DraftKings,” said John Salter, partner with the bank.

"DraftKings has established the optimal mix of cutting edge technology, broad industry knowledge and a deeply loyal user base to further push its leadership in this space and we are delighted to partner with them as they continue to expand.”

The Boston-based start-up plans to use the cash to extend its product range and marketing reach.

Jason Robins, CEO and co-founder of DraftKings, said: "This is a groundbreaking week for DraftKings. We expect the growth in contest sizes and variety to continue. We look forward to continuing to transform the industry through technology innovation and larger and even more exciting contests, cementing our position as the best destination for daily fantasy sports.”

The news is reflective of the rapid growth in the daily fantasy industry, which Forbes said was "impossible to ignore".

ESPN The Magazine editor-in-chief Chad Millman recently claimed that daily fantasy cash games were gambling in all but name thanks to the amount of money changing hands and the immediacy of the results.