A US firm has taken a £120 million stake in a Canadian firm which specialises in skilled online gambling games.

Games such as chess, 60-second solitaire and dominoes do not come under gambling rules as there is no betting involved, only the skill of the individual players.

The company, Fun Technologies, is expected to fill a huge hole in the lucrative online gambling market, in which British investors have recently taken a huge interest.

Lorne Abony, chief executive of the company told the Guardian: "Casino gambling grew from 1996 to 2001 but it is mostly now ex-growth.

""Online poker grew from 2000 to 2005 but it's gradually flattening out. If investors want to have a go with a growing industry