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

From Tuesday, brand-new rules on wagering came into impact in Delaware, a tiny east coast state about 2 hours from Washington.

Neighbouring New Jersey might begin accepting sports bets as early as Friday.

The modifications are the first in what might end up being a wave of legalisation after the Supreme Court last month cleared the method for states to enable sports betting.

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

For UK companies, which are facing combination, increased online competition and tougher rules from UK regulators, the timing is particularly appropriate.

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But the industry states relying on the US remains a dangerous bet, as UK companies face complex state-by-state guideline and competitors from entrenched local interests.

"It's something that we're really focusing on, but similarly we don't want to overhype it," stated James Midmer, spokesman at Paddy Power Betfair, which just recently purchased the US fantasy sports betting website FanDuel.

'Take some time'

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

Firms are wishing 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.

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

That is anticipated to result in significant variation in how firms get accredited, where sports betting can happen, and which occasions are open to speculation - with big implications for the size of the marketplace.

Potential profits varieties from $4.2 bn to almost $20bn every year depending upon aspects like the number of states move to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

"There was a lot of 'this is going to be substantial'", said Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he stated: "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 wagering in some form by 2023, developing a market with about $6bn in yearly revenue.

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

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

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

States have also been slow to legalise numerous kinds of online betting, regardless of a 2011 Justice Department viewpoint that appeared to get rid of barriers.

While sports wagering is typically viewed in its own category, "it plainly stays to be seen whether it gets the type of momentum people believe it will," stated 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 detained in the US in 2006 for running an offshore online sportsbook and served prison time.

Now a consultant, he states UK companies should approach the market carefully, choosing partners with care and avoiding mistakes that might cause regulator reaction.

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

'It will be collaborations'

As legalisation begins, sports wagering companies are lobbying to fend off high tax rates, as well as requests by US sports leagues, which want to gather a percentage of revenue as an "stability cost".

International companies deal with the included obstacle of a powerful existing gaming market, with casino operators, state-run lotteries and Native American people that are seeking to defend their turf.

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

They point to SBTech's recent announcement that it is offering 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 innovation," Mr Hawkley stated.

'It will simply depend'

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

The business has actually been purchasing the US market considering that 2011, when it bought 3 US companies to establish a presence in Nevada.

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

It works as threat manager for the Delaware Lottery and has invested millions together with a local designer in a New Jersey horse racing track.

Mr Asher said William Hill has actually become a home name in Nevada however that's not always the objective all over.

"We certainly mean to have a very substantial brand name presence in New Jersey," he said. "In other states, it will simply depend on policy and potentially who our regional partner is."

"The US is going to be the most significant sports betting market on the planet," he added. "Obviously that's not going to occur on day one."