Among Scotland's leading innovation companies has alerted it might not have the ability to continue as a going concern due to legal challenges in its American market.

FanDuel was established in Edinburgh, where much of its innovation is established.

Its headquarters were relocated to New York to make it more of an American company in appealing to a large US and Canadian market for dream sports.

It has turned into one of the 2 giants of that sector, in addition to US-based Draft Kings.

They supply an innovation platform for fans of the 4 primary American sports to pick fantasy groups from real gamers, and follow their performances. Changes are permitted from day to day, which assists drive more traffic than fantasy teams which are fixed for a season, and there are substantial prizes available.

The fantasy sports companies have come under pressure from civil cases along with state regulators and legislators, with efficient ban on the online games as being based on possibility instead of ability.

Facing action from legal authorities, FanDuel has actually had to wind down its activities in Texas from the start of this promotion code month and in New york city State for the yohaig code previous two months.

Recently, members of the US Congress in Washington DC began an investigation into the market. And with unpredictability about its legality, the companies have dealt with barriers from at least one payment processing firm that are an important avenue to their revenue.

The audited accounts have just been published and state that the legal obstacles called into question the continued solvency of the business.

So far, the limits on its activities have only affected states which represent less than half of its profits. Attorney generals in numerous states have recommended that fantasy sports are prohibited, 5 state legislatures have passed laws to clarify the yohaig code legal position, with more expected.

But auditors alert that if there is a rise in the share of the marketplace obstructed by legal doubts, "such a possibility represents a material unpredictability that casts substantial doubt on the group's ability to continue as a going concern".

Substantial funds

FanDuel "considers itself to be running lawfully, is currently safeguarding its position and for that reason the directors have sensible expectations that the group has adequate resources to continue for the foreseeable future."

The accounts say it is making contingency strategies, consisting of a cut in variable expenditures, most likely to consist of marketing, advertising and cash prize, along with delaying some operating cost payments.

The most recent accounts cover the 18 months to the end of June last year, before a blizzard of marketing and promotion last autumn brought attention to the scale of business, and began the legal challenges.

During that time, FanDuel had turnover of $87.7 m (₤ 61m), up from $12m (₤ 8.3 m) in the preceding 12 months.

The number of active players rose from 253,000 during 2013 to 1.25 m to the middle of 2015.

Between January 2014 and June 2015, it paid $102m (₤ 71m) in "service charge", and spent heavily on an intense battle to develop market share.

There was an operating loss for the 18 months to last June of $77.7 m (₤ 54m), up from $10.3 m (₤ 7m) throughout 2013. It continued to raise considerable funds through releasing equity, and remains in conversations on additional financier fund-raising.

Facing the threat of being shut down by policy and law, the business has cut its money balances from roughly $274m (₤ 190m) in the middle of last year to less than $48m, which it states need to be adequate to keep it trading for a further 12 months - assuming it succeeds in its legal defence.