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

From Tuesday, brand-new guidelines on wagering came into effect in Delaware, a small east coast state about 2 hours from Washington.

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

The modifications are the 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 "when in a generation" chance to establish a brand-new market in sports-mad America, said Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.

For UK companies, which are coming to grips with combination, increased online competitors and tougher guidelines from UK regulators, the timing is especially suitable.

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But the industry says relying on the US remains a risky bet, as UK companies deal with complex state-by-state guideline and competitors from entrenched regional interests.

"It's something that we're truly concentrating on, but equally we don't desire to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently purchased the US dream sports website FanDuel.

'Take some time'

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

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

The ruling found the law was an over-reach of federal power. But the court it did not really legalise sports wagering, leaving that question to regional lawmakers.

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

Potential income ranges from $4.2 bn to practically $20bn each year depending on elements like the number of states move to legalise, Oxford Economics approximated 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 stated: "I believe many individuals ... are looking 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 take 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 yearly revenue.

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

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

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

States have actually likewise been sluggish to legalise lots of types of online betting, in spite of a 2011 Justice Department opinion that appeared to get rid of obstacles.

While sports betting is typically viewed in its own category, "it plainly remains to be seen whether it gets the type of momentum individuals think it will," said Keith Miller, law professor at Drake University and co-author of a book about sports wagering guideline.

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

Now a specialist, he states UK firms need to approach the market carefully, choosing partners with care and avoiding mistakes that could lead to regulator backlash.

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

'It will be collaborations'

As legalisation starts, sports wagering companies are lobbying to fend off high tax rates, in addition to requests by US sports leagues, which wish to gather a percentage of earnings as an "stability cost".

International companies deal with the included obstacle of a powerful existing video gaming market, with gambling establishment operators, state-run lottery games and Native American tribes that are looking for to safeguard their turf.

Analysts say UK firms will need to strike partnerships, offering their knowledge and technology in order to make inroads.

They indicate SBTech's current announcement that it is providing 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 everyone, however it will be partnerships and it will be driven by technology," Mr Hawkley said.

'It will simply depend'

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

The business has been investing in the US market since 2011, when it bought three US firms to develop an existence 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 threat supervisor for the Delaware Lottery and has actually invested millions together with a regional designer in a New Jersey horse racing track.

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

"We certainly intend to have a very considerable brand name presence in New Jersey," he stated. "In other states, it will just depend upon policy and possibly who our local partner is."

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