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

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

Neighbouring New Jersey might 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 way for states to enable sports wagering.

The market sees a "as soon as in a generation" chance to establish a 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 facing debt consolidation, increased online competitors and tougher guidelines from UK regulators, the timing is especially opportune.

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But the market states counting on the US stays a risky bet, as UK business face complicated state-by-state regulation and competition from established regional interests.

"It's something that we're truly concentrating on, however similarly we do not desire to overhype it," said James Midmer, representative at Paddy Power Betfair, which recently acquired the US fantasy sports site FanDuel.

'Take time'

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

Firms are wanting to tap into more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states beyond Nevada and a couple of others from authorising sports betting wagering.

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

That is expected to cause considerable variation in how companies get licensed, where sports wagering can happen, and which occasions are open to speculation - with big implications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to almost $20bn yearly depending on elements like the number of states transfer to legalise, Oxford Economics approximated in a 2017 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 consultants KPMG.

Now, he stated: "I think many people ... are taking a look 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 wagering in some form by 2023, developing a market with about $6bn in yearly revenue.

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

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

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

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

While sports betting is typically seen in its own category, "it clearly remains 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 betting regulation.

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

Now a consultant, he says UK companies should approach the marketplace thoroughly, selecting partners with care and preventing missteps that could cause regulator backlash.

"This is an opportunity for the American sports gambler ... I'm not exactly sure whether it is an opportunity for organization," he says. "It actually is reliant on the outcome of [state] legislation and how business operators pursue the opportunity."

'It will be collaborations'

As legalisation begins, sports wagering firms are lobbying to ward off high tax rates, in addition to requests by US sports leagues, which want to collect a percentage of profits as an "integrity charge".

International companies deal with the included difficulty of a powerful existing video gaming market, with gambling establishment operators, state-run lotteries and Native American people that are looking for to protect their grass.

Analysts say UK companies will need to strike collaborations, offering their competence and technology in order to make inroads.

They indicate SBTech's recent statement that it is supplying innovation for Kentucky Derby operator Churchill Downs as an example of the type 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 just depend'

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

The company has been investing in the US market given that 2011, when it bought 3 US firms to establish an existence in Nevada.

William Hill now utilizes about 450 individuals in the US and has announced partnerships with casinos in Iowa and New Jersey.

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

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

"We certainly mean to have an extremely considerable brand name presence in New Jersey," he stated. "In other states, it will simply depend upon regulation and possibly who our local partner is."

"The US is going to be the most significant sports betting market worldwide," he included. "Obviously that's not going to take place on the first day."