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

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

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

The changes are the first in what could become a wave of legalisation after the Supreme Court last month cleared the method for states to allow sports wagering.

The industry sees a "as soon as in a generation" opportunity to establish a brand-new market in sports-mad America, stated Dublin-based monetary expert David Jennings, who heads leisure research study at Davy.

For UK companies, which are coming to grips with combination, increased online competition and tougher guidelines from UK regulators, the timing is particularly appropriate.

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But the market says depending on the US remains a risky bet, as UK business deal with complex state-by-state policy and competitors from established local interests.

"It's something that we're really focusing on, but equally we don't want to overhype it," said James Midmer, representative at Paddy Power Betfair, which recently purchased the US fantasy sports website FanDuel.

'Require time'

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

Firms are wishing to use more of that activity after last month's choice, which overruled a 1992 federal law that barred states outside of Nevada and a couple of others from authorising sports betting.

The ruling found the law was an over-reach of federal power. But the court it did not actually legalise sports betting, leaving that concern to local lawmakers.

That is expected to result in significant variation in how companies get certified, where sports wagering can occur, and which events are open to speculation - with big ramifications for the size of the marketplace.

Potential revenue varieties from $4.2 bn to practically $20bn every year depending on aspects like the number of states transfer to legalise, Oxford Economics approximated in a 2017 research study for the American Gaming Association.

"There was a lot of 'this is going to be huge'", stated Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he said: "I believe the majority of people ... are looking at this as, 'it's a chance but it's not going to be $20bn and it's going to be state by state and it's going to take some time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports wagering in some form by 2023, developing a market with about $6bn in annual profits.

But bookmakers face a far different landscape in America than they carry out in the UK, where wagering shops are a regular sight.

US laws restricted gambling largely to Native American lands and Nevada's Las Vegas strip up until fairly recently.

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

States have also been sluggish to legalise lots of kinds of online gaming, despite a 2011 Justice Department opinion that appeared to eliminate obstacles.

While sports wagering is usually seen in its own category, "it plainly stays to be seen whether it gets the sort of momentum individuals think it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports wagering guideline.

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

Now a consultant, he states UK companies must approach the market thoroughly, picking partners with care and avoiding errors that could result in regulator backlash.

"This is a chance for the American sports gambler ... I'm unsure whether it is an opportunity for business," he states. "It actually is dependent on the outcome of [state] legislation and how the organization operators pursue the opportunity."

'It will be partnerships'

As legalisation begins, sports betting firms are lobbying to fend off high tax rates, in addition to demands by US sports leagues, which desire to gather a percentage of revenue as an "stability fee".

International companies deal with the added challenge of a powerful existing gaming market, with casino operators, state-run lotteries and Native American people that are looking for to defend their turf.

Analysts say UK companies will need to strike collaborations, offering their proficiency and technology in order to make inroads.

They indicate SBTech's current statement that it is supplying innovation for Kentucky Derby operator Churchill Downs as an example of the sort of deals most likely to materialise.

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

'It will simply depend'

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

The business has been buying the US market considering that 2011, when it bought 3 US firms to establish an existence in Nevada.

William Hill now employs about 450 individuals in the US and has actually announced collaborations with gambling establishments in Iowa and New Jersey.

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

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

"We certainly intend to have a really considerable brand name existence in New Jersey," he said. "In other states, it will just depend upon regulation and potentially who our regional partner is."

"The US is going to be the most significant sports wagering market in the world," he included. "Obviously that's not going to occur on the first day."