It's high stakes for UK companies as sports betting starts to spread in America.

From Tuesday, new rules on wagering entered effect in Delaware, a small east coast state about two hours from Washington.

Neighbouring New Jersey might begin accepting sports bets as early as Friday.

The modifications are the first in what could end up being a wave of legalisation after the Supreme Court last month cleared the way for states to enable sports wagering.

The market sees a "when in a generation" chance to develop a brand-new market in sports-mad America, stated Dublin-based financial expert David Jennings, who heads leisure research study at Davy.

For UK firms, which are facing debt consolidation, increased online competition and tougher guidelines from UK regulators, the timing is particularly appropriate.

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But the industry says depending on the US remains a dangerous bet, as UK companies face complex state-by-state guideline and competitors from established local interests.

"It's something that we're actually focusing on, but similarly we do not wish to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently bought the US fantasy sports website FanDuel.

'Take time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in video gaming income last year, according to a report by Technavio, external published in January.

Firms are wishing to take advantage of more of that activity after last month's decision, which struck down a 1992 federal law that barred states outside of Nevada and a few others from authorising sports betting.

The judgment discovered the law was an over-reach of federal power. But the court it did not actually legalise sports wagering, leaving that concern to local legislators.

That is anticipated to lead to considerable variation in how firms get licensed, where sports wagering can happen, and which events are open to speculation - with huge implications for the size of the marketplace.

Potential earnings ranges from $4.2 bn to nearly $20bn annually depending upon elements like how numerous states relocate to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

"There was a great deal of 'this is going to be substantial'", said Will Hawkley, London-based head of leisure for experts KPMG.

Now, he said: "I believe many people ... are taking a look at this as, 'it's a chance however it's not going to be $20bn and it's going to be state by state and it's going to require time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports wagering in some kind by 2023, creating a market with about $6bn in annual income.

But bookies deal with a far different landscape in America than they do in the UK, where wagering shops are a frequent sight.

US laws minimal betting mainly to Native American lands and Nevada's Las Vegas strip till relatively recently.

In the popular imagination, sports betting has long been linked to a 1919 baseball World Series match-fixing scandal.

States have actually likewise been slow to legalise lots of kinds of online betting, despite a 2011 Justice Department opinion that appeared to get rid of obstacles.

While sports betting is typically viewed in its own category, "it plainly remains to be seen whether it gets the type of momentum individuals believe it will," stated Keith Miller, law teacher at Drake University and co-author of a book about sports betting regulation.

David Carruthers is the former president of BetonSports, who was arrested in the US in 2006 for running an offshore online sportsbook and served prison time.

Now a consultant, he states UK companies ought to approach the market thoroughly, choosing partners with caution and preventing bad moves that might cause regulator reaction.

"This is an opportunity for the American sports wagerer ... I'm not sure whether it is an opportunity for service," he states. "It actually depends on the outcome of [state] legislation and how the organization operators pursue the opportunity."

'It will be collaborations'

As legalisation starts, sports betting firms are lobbying to fend off high tax rates, as well as requests by US sports leagues, which want to gather a portion of earnings as an "stability cost".

International business face the added obstacle of a powerful existing gaming market, with gambling establishment operators, state-run lotteries and Native American people that are seeking to protect their grass.

Analysts state UK companies will need to strike collaborations, providing their expertise and innovation in order to make inroads.

They indicate SBTech's current announcement that it is supplying innovation for Kentucky Derby operator Churchill Downs as an example of the type of offers likely to materialise.

"It will be a win-win for everybody, but it will be partnerships and it will be driven by technology," Mr Hawkley said.

'It will just depend'

Joe Asher, president at William Hill US, is clear-eyed about the realities.

The business has been purchasing the US market considering that 2011, when it purchased three US companies to establish a presence in Nevada.

William Hill now utilizes about 450 people in the US and has actually revealed partnerships with gambling establishments in Iowa and New Jersey.

It works as risk manager for the Delaware Lottery and has actually invested millions together with a regional designer in a New Jersey horse racing track.

Mr Asher stated William Hill has actually ended up being a home name in Nevada however that's not necessarily the objective everywhere.

"We certainly mean to have an extremely significant brand presence in New Jersey," he said. "In other states, it will simply depend upon policy and possibly who our regional partner is."

"The US is going to be the biggest sports betting market worldwide," he included. "Obviously that's not going to occur on day one."