We reported last month on an up and coming startup called Skillz which we believe is one to watch. The idea behind Skillz is simple in that they aim to offer a legal real money gaming option in the U.S. where games of skill are permitted. This simple yet clever idea could be huge as over 36 U.S. states allow players to wage real money on games that are skill-based.

In a positive sign the Boston and San Francisco startup announced on Wednesday that they have raised $5.5 million which will be used to expand their operations. Another encouraging fact is there have been over one million downloads of their tournament platform which was launched only in April.

Founded in 2012 by Andrew Paradise and Casey Chafkin, Skillz  offers a platform which offers new monetization opportunities for developers with the result being,” making game development more profitable and gaming more fun.”

Offering online gamers the chance to play for real cash has endless potential as they are catering for multiple target audiences. Many traditional gamers would be more than happy to test their skills in a competitive environment with real cash prizes on offer. There is also the somewhat frustrated online casino gambler who in regions like the U.S. do not always enjoy the opportunity to gamble online legally. It is safe to assume that classic games would suffice for many who in essence just want to have a flutter for real cash irrespective of the game involved.