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

From Tuesday, new rules on betting entered impact 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 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 analyst David Jennings, who heads leisure research study at Davy.

For UK firms, which are coming to grips with consolidation, increased online competitors and tougher guidelines from UK regulators, the timing is particularly appropriate.

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But the market states depending on the US stays a risky bet, as UK companies deal with complex state-by-state guideline and competition from entrenched local interests.

"It's something that we're actually focusing on, but similarly we don't wish to overhype it," stated James Midmer, spokesperson at Paddy Power Betfair, which just recently acquired the US dream sports website FanDuel.

'Require time'

The US represented about 23% of the world's $244bn (₤ 182bn) in video gaming earnings 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 wagering.

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 lawmakers.

That is expected to lead to substantial variation in how companies get certified, where sports betting can occur, and which events are open to speculation - with big implications for the size of the marketplace.

Potential earnings ranges from $4.2 bn to almost $20bn each year depending upon elements like how many states move 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 big'", stated Will Hawkley, London-based head of leisure for experts KPMG.

Now, he stated: "I believe a lot of individuals ... are looking at this as, 'it's an opportunity but it's not going to be $20bn and it's going to be state by state and it's going to take time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports betting in some form by 2023, developing a market with about $6bn in yearly revenue.

But bookmakers deal with a far various landscape in America than they perform in the UK, where wagering stores are a regular sight.

US laws restricted gaming mostly to Native American lands and Nevada's Las Vegas strip up until relatively recently.

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

States have likewise been sluggish to legalise numerous types of online gaming, regardless of a 2011 Justice Department viewpoint that appeared to remove barriers.

While sports betting is generally seen in its own classification, "it clearly stays to be seen whether it gets the kind of momentum individuals believe it will," said Keith Miller, law teacher at Drake University and co-author of a book about sports wagering guideline.

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

Now a consultant, he says UK companies need to approach the market carefully, choosing partners with caution and avoiding bad moves that could result in regulator backlash.

"This is an opportunity for the American sports gambler ... I'm uncertain whether it is a chance for organization," he says. "It truly depends on the result of [state] legislation and how business operators pursue the opportunity."

'It will be partnerships'

As legalisation starts, sports wagering firms are lobbying to ward off high tax rates, along with demands by US sports leagues, which want to collect a portion of income as an "integrity charge".

International companies face the included challenge of a powerful existing gaming market, with gambling establishment operators, state-run lottos and Native American people that are looking for to defend their turf.

Analysts state UK firms will need to strike collaborations, providing their knowledge and technology in order to make inroads.

They point to SBTech's current statement that it is providing technology for Kentucky Derby operator Churchill Downs as an example of the sort of offers 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 stated.

'It will just depend'

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

The business has actually been investing in the US market given that 2011, when it bought three US firms to establish a presence in Nevada.

William Hill now uses about 450 individuals in the US and has announced partnerships with gambling establishments in Iowa and New Jersey.

It works as danger supervisor for the Delaware Lottery and has actually invested millions alongside a regional developer in a New Jersey horse racing track.

Mr Asher said William Hill has actually ended up being a home name in Nevada but that's not necessarily the goal all over.

"We certainly intend to have a really significant brand name presence in New Jersey," he stated. "In other states, it will simply depend upon policy and potentially who our regional partner is."

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