Fantasy sport firm Fanduel told to stop taking bets in New York

One of Scotland's fastest growing tech firms has been delivered a blow by regulators in New York.

Fanduel, a sports fantasy gaming firm, has been given a cease and desist notice, effectively telling it to stop taking money in the state.

The top prosecutor said that fantasy sports firms were running illegal gambling operations.

Fanduel said what it was doing was legal and described the move by prosecutors as extreme.

The ban follows the launch of an investigation in October by the FBI and the US Department of Justice.

They are investigating whether fantasy sports sites violate laws against online gambling.

FanDuel co-founders Nigel Eccles and Lesley Eccles live in Edinburgh

The company is a leading player in the US fantasy sports business - a sector which has more than 40 million followers.

This year it is expected to give away about $2bn (£1.3bn) in prize money.

The company, which employs about 500 people in the UK and the US, is taking legal advice on the situation.

Although it was founded in Edinburgh in 2009 by entrepreneurs Nigel and Lesley Eccles, it only operates in America and Canada.

The pair still live in the Scottish capital, although the site's headquarters are in New York.