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

From Tuesday, new guidelines on betting entered into impact in Delaware, a small 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 allow sports wagering.

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

For UK companies, which are grappling with combination, increased online competitors and tougher rules from UK regulators, the timing is especially suitable.

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But the industry states depending on the US stays a dangerous bet, as UK business deal with complicated state-by-state policy and competition from entrenched regional interests.

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

'Take time'

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

Firms are wishing to tap into more of that activity after last month's decision, which overruled a 1992 federal law that barred states beyond 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 in fact legalise sports wagering, leaving that question to regional lawmakers.

That is anticipated to cause significant variation in how companies get accredited, where sports betting can happen, and which events are open to speculation - with big ramifications for the size of the market.

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

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

Now, he stated: "I believe many people ... are taking a look at this as, 'it's an opportunity however 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 betting in some type by 2023, creating a market with about $6bn in annual earnings.

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

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

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

States have likewise been slow to legalise numerous kinds of online gambling, in spite of a 2011 Justice Department viewpoint that appeared to eliminate obstacles.

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

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

Now a consultant, he says UK firms need to approach the marketplace thoroughly, choosing partners with caution and avoiding errors that could lead to regulator reaction.

"This is an opportunity for the American sports betting wagerer ... I'm not exactly sure whether it is a chance for company," he says. "It actually depends on the result of [state] legislation and how business operators pursue the chance."

'It will be partnerships'

As legalisation begins, sports betting firms are lobbying to ward off high tax rates, in addition to demands by US sports betting leagues, which wish to collect a percentage of profits as an "stability charge".

International business face the added challenge of a powerful existing gaming industry, with casino operators, state-run lotteries and Native American tribes that are seeking to protect their turf.

Analysts state UK companies will require to strike collaborations, providing their proficiency and technology in order to make inroads.

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

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

'It will just depend'

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

The company has actually been purchasing the US market given that 2011, when it purchased 3 US companies to establish a presence in Nevada.

William Hill now employs about 450 individuals in the US and has revealed collaborations with casinos in Iowa and New Jersey.

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

Mr Asher said William Hill has ended up being a home name in Nevada but that's not always the goal everywhere.

"We definitely intend to have an extremely substantial brand existence in New Jersey," he stated. "In other states, it will simply depend on regulation and potentially who our local partner is."

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