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

From Tuesday, brand-new rules on wagering entered into result 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 changes are the first in what could become a wave of legalisation after the Supreme Court last month cleared the method for states to enable sports betting.

The industry sees a "as soon as in a generation" chance 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 facing consolidation, increased online competition and harder guidelines from UK regulators, the timing is especially opportune.

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But the market states depending on the US remains a risky bet, as UK business face complex state-by-state policy and competition from entrenched local interests.

"It's something that we're truly concentrating on, but similarly we don't wish to overhype it," stated James Midmer, spokesman at Paddy Power Betfair, which just recently purchased the US fantasy sports site FanDuel.

'Require time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming revenue 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 disallowed states outside of Nevada and a few others from authorising sports betting wagering.

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

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

Potential profits ranges from $4.2 bn to practically $20bn yearly depending upon elements like how many states transfer to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

"There was a lot of 'this is going to be big'", said Will Hawkley, London-based head of leisure for experts 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, managing director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports betting wagering in some type by 2023, creating a market with about $6bn in annual profits.

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

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

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

States have actually also been slow to legalise many types of online gambling, despite a 2011 Justice Department viewpoint that appeared to remove obstacles.

While sports wagering is typically seen in its own classification, "it plainly remains to be seen whether it gets the kind of momentum people believe it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting wagering guideline.

David Carruthers is the former president of BetonSports, who was arrested 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 market carefully, selecting partners with caution and avoiding errors that could result in regulator backlash.

"This is an opportunity for the American sports gambler ... I'm unsure whether it is an opportunity for company," he states. "It truly depends on the outcome of [state] legislation and how the service operators pursue the opportunity."

'It will be collaborations'

As legalisation begins, sports betting wagering companies are lobbying to ward off high tax rates, along with demands by US sports leagues, which wish to collect a percentage of earnings as an "stability charge".

International business face the included obstacle of an effective existing video gaming industry, with gambling establishment operators, state-run lotteries and Native American people that are looking for to protect their grass.

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

They point to SBTech's recent announcement that it is providing innovation 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 everyone, however 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 company has been investing in the US market since 2011, when it purchased three US firms to develop an existence in Nevada.

William Hill now utilizes about 450 people in the US and has actually announced collaborations with casinos in Iowa and New Jersey.

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

Mr Asher said William Hill has become a home name in Nevada however that's not necessarily the objective everywhere.

"We definitely plan to have a really considerable brand name existence in New Jersey," he said. "In other states, it will simply depend upon regulation and potentially who our local partner is."

"The US is going to be the biggest sports wagering market on the planet," he included. "Obviously that's not going to happen on day one."