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

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

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

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

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

For UK companies, which are grappling with consolidation, increased online competition and tougher rules from UK regulators, the timing is particularly opportune.

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But the industry says depending on the US stays a risky bet, as UK companies deal with complex state-by-state regulation and competition from established regional interests.

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

'Take time'

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

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

The ruling discovered the law was an over-reach of federal power. But the court it did not really legalise sports betting, leaving that concern to regional legislators.

That is expected to cause significant variation in how firms get licensed, where sports wagering can happen, and which events are open to speculation - with huge implications for the size of the market.

Potential income ranges from $4.2 bn to practically $20bn each year depending on aspects like how numerous 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 think a lot of people ... 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, handling director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports wagering in some form by 2023, developing a market with about $6bn in yearly profits.

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

US laws limited gambling mainly to Native American lands and Nevada's Las Vegas strip till relatively just recently.

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

States have actually also been sluggish to legalise lots of forms of online betting, in spite of a 2011 Justice Department viewpoint that appeared to get rid of barriers.

While sports betting is generally seen in its own category, "it plainly remains to be seen whether it gets the sort of momentum individuals believe it will," stated Keith Miller, law teacher at Drake University and co-author of a book about sports betting policy.

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

Now an expert, he states UK companies must approach the marketplace carefully, choosing partners with caution and preventing errors that might cause regulator backlash.

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

'It will be partnerships'

As legalisation starts, sports wagering companies are lobbying to ward off high tax rates, in addition to demands by US sports leagues, which want to gather a portion of revenue as an "stability fee".

International companies face the added obstacle of a powerful existing gaming market, with gambling establishment operators, state-run lottos and Native American people that are seeking to protect their grass.

Analysts state UK firms will require to strike collaborations, offering their knowledge and innovation in order to make inroads.

They point to SBTech's recent announcement that it is offering technology for Kentucky Derby operator Churchill Downs as an example of the type of offers 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 simply depend'

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

The company has been buying the US market considering that 2011, when it purchased three US firms to establish a presence 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 threat manager 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 actually ended up being a family name in Nevada however that's not always the goal everywhere.

"We certainly intend to have a very significant brand name existence in New Jersey," he stated. "In other states, it will simply depend on regulation and potentially who our regional partner is."

"The US is going to be the greatest sports wagering market worldwide," he added. "Obviously that's not going to occur on day one."