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Hundreds of new jobs are set to be created under a new partnership between Scottish software developer xDesign and US-based sports gaming giant FanDuel.

Under the deal, the two companies have committed to creating a total of 400 roles - many of them in Edinburgh and Glasgow - by the end of 2022.

They will also invest £250,000 a year in drawing new talent into the market.

Edinburgh-based xDesign has provided FanDuel with product and engineering support for the past 18 months.

Under the multi-year deal, xDesign will boost its team working on the FanDuel account in Leeds and Edinburgh by 40 people to 120.

It is also plans to add 150 staff to its existing headcount of 200 by the end of 2022.

FanDuel, which was founded in Edinburgh but is now owned by sports betting and gaming group Flutter Entertainment, aims to create 250 engineering jobs this year.

The company currently which offers sportsbook, fantasy sports, online casino and online horse race betting products. It said the new staff would have the ability to work at its offices in Edinburgh, Glasgow and Atlanta.

Euan Andrews, chief executive of xDesign, said: "Investing in people and creating a platform for future tech talent is a must to tackle the ever-widening tech skills gap.

"While job creation and growth form a huge part of this partnership, engagement and support for those at the early stages of their career in technology is vital.

"Extending our relationship with an organisation as successful as FanDuel will significantly contribute to identifying and cultivating the next generation of talent in the UK which both companies are fanatical about."

FanDuel Group chief operating officer Andy Giancamilli said: "The boom of the UK and Scottish tech sector is undeniable, and we believe this partnership with xDesign provides fantastic support and supplements the work our FanDuel world-class engineering teams do."

Clients of xDesign include Heineken and NHS 24.

In 2020, Flutter Entertainment took a majority share in FanDuel for a reported $4.2bn (£3.3bn).