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

From Tuesday, brand-new guidelines on wagering entered result in Delaware, a tiny east coast state about 2 hours from Washington.

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

The modifications are the very first in what might become a wave of legalisation after the Supreme Court last month cleared the way for states to enable sports wagering.

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

For UK companies, which are coming to grips with consolidation, increased online competitors and harder guidelines from UK regulators, the timing is especially opportune.

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But the market states counting on the US remains a risky bet, as UK companies deal with complicated state-by-state guideline and competitors from entrenched regional interests.

"It's something that we're really focusing on, however similarly we don't want to overhype it," said James Midmer, spokesman at Paddy Power Betfair, which just recently acquired the US dream sports site FanDuel.

'Take some time'

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

Firms are intending 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 wagering.

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

That is anticipated to result in considerable variation in how companies get licensed, where sports wagering can occur, and which events are open to speculation - with huge ramifications for the size of the market.

Potential earnings varieties from $4.2 bn to nearly $20bn annually depending on elements 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 big'", said Will Hawkley, London-based head of leisure for experts KPMG.

Now, he said: "I think a lot of individuals ... are taking a look 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 some time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports betting in some form by 2023, producing a market with about $6bn in yearly 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 restricted betting mostly to Native American lands and Nevada's Las Vegas strip until fairly just recently.

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

States have actually likewise been slow to legalise numerous forms of online gaming, in spite of a 2011 Justice Department viewpoint that appeared to get rid of obstacles.

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

David Carruthers is the previous president of BetonSports, who was arrested in the US in 2006 for running an offshore online sportsbook and served prison time.

Now an expert, he says UK companies should approach the market thoroughly, choosing partners with care and avoiding errors that might cause regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports betting companies are lobbying to ward off high tax rates, as well as demands by US sports leagues, which wish to gather a portion of income as an "stability fee".

International business deal with the added difficulty of an effective existing gaming market, with casino operators, state-run lottery games and Native American tribes that are seeking to defend their turf.

Analysts say UK firms will need to strike collaborations, providing their competence and innovation in order to make inroads.

They point to SBTech's recent announcement that it is providing technology for Kentucky Derby operator Churchill Downs as an example of the kind of offers 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, primary executive at William Hill US, is clear-eyed about the realities.

The business has actually been investing in the US market considering that 2011, when it purchased three US companies to establish an existence in Nevada.

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

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

Mr Asher stated William Hill has actually ended up being a home name in Nevada but that's not necessarily the goal everywhere.

"We definitely intend to have a very considerable brand name presence in New Jersey," he said. "In other states, it will just depend upon policy and potentially who our regional partner is."

"The US is going to be the most significant sports wagering market in the world," he added. "Obviously that's not going to take place on the first day."