Hub-based fantasy sports company DraftKings Inc. said today it has closed $7 million in a first round of funding led by Atlas Venture.
DraftKings said it plans to use the money to "broadly market" its online and mobile offerings in short-term fantasy sports play.
"DraftKings' average user spends over three hours per week on the site and plays 2.6 different sports. We were amazed to see how popular fantasy basketball became with our fantasy football customers, and we are now seeing similar conversion from fantasy basketball to fantasy baseball," said DraftKings CEO Jason Robins. "Our products provider a true second complement to the sports viewing experience, and we see our highest levels of engagement during the actual games themselves."
The company, which offers free and pay contests every day that pay cash prizes, launched in April 2012.
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