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

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

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

The modifications are the very first in what might become a wave of legalisation after the Supreme Court last month cleared the way for states to enable sports wagering.

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

For UK companies, which are coming to grips with combination, increased online competition and harder rules from UK regulators, the timing is especially opportune.

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But the industry states counting on the US remains a risky bet, as UK business face complex state-by-state policy and competition from established regional interests.

"It's something that we're really concentrating on, however similarly we do not want to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently bought the US fantasy sports website FanDuel.

'Take time'

The US represented about 23% of the world's $244bn (₤ 182bn) in video gaming revenue in 2015, according to a report by Technavio, external published in January.

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

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

That is expected to lead to substantial variation in how firms get licensed, where sports betting can happen, and which events are open to speculation - with huge ramifications for the size of the marketplace.

Potential earnings ranges from $4.2 bn to practically $20bn annually depending on aspects like the number of states relocate to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

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

Now, he said: "I think the majority of 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, anticipates that 32 states will legalise sports betting in some type by 2023, developing a market with about $6bn in yearly income.

But bookmakers face a far different landscape in America than they do in the UK, where betting shops are a frequent sight.

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

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

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

While sports wagering is normally seen in its own category, "it plainly remains to be seen whether it gets the kind of momentum people think it will," said Keith Miller, law professor at Drake University and co-author of a book about sports wagering regulation.

David Carruthers is the former chief executive 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 ought to approach the market carefully, picking partners with caution and avoiding errors that might lead to regulator backlash.

"This is an opportunity for the American sports bettor ... I'm not exactly sure whether it is a chance for business," he says. "It truly is reliant on the outcome of [state] legislation and how business operators pursue the opportunity."

'It will be collaborations'

As legalisation starts, sports wagering companies are lobbying to fend off high tax rates, as well as demands by US sports leagues, which wish to gather a percentage of revenue as an "integrity fee".

International companies face the included challenge of a powerful existing gaming industry, with casino operators, state-run lottery games and Native American tribes that are looking for to defend their turf.

Analysts say UK firms will need to strike partnerships, offering their know-how 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 kind of deals most 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, primary executive at William Hill US, is clear-eyed about the truths.

The business has actually been buying the US market since 2011, when it bought 3 US companies to develop 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 danger manager for the Delaware Lottery and has invested millions alongside a local developer in a New Jersey horse racing track.

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

"We certainly plan to have a really substantial brand name existence in New Jersey," he stated. "In other states, it will just depend on regulation and potentially who our regional partner is."

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