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

From Tuesday, brand-new rules on wagering 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 modifications are the very first in what could end up being a wave of legalisation after the Supreme Court last month cleared the way for states to allow sports wagering.

The industry sees a "when in a generation" opportunity to establish a brand-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 tougher guidelines from UK regulators, the timing is especially appropriate.

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But the industry says counting on the US stays a dangerous bet, as UK business face complex state-by-state policy and competition from established local interests.

"It's something that we're actually focusing on, but equally we don't wish to overhype it," said James Midmer, spokesman at Paddy Power Betfair, which recently purchased the US dream sports site FanDuel.

'Require time'

The US accounted for 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 hoping to tap into more of that activity after last month's choice, which struck down a 1992 federal law that barred states outside of 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 in fact legalise sports wagering, leaving that concern to local legislators.

That is anticipated to result in considerable variation in how companies get certified, where sports wagering can happen, and which events are open to speculation - with big implications for the size of the market.

Potential profits ranges from $4.2 bn to nearly $20bn annually 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 great deal of 'this is going to be big'", said Will Hawkley, London-based head of leisure for experts KPMG.

Now, he said: "I think most individuals ... are taking a look at this as, 'it's an opportunity 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, handling director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports betting in some kind by 2023, creating a market with about $6bn in annual profits.

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

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

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

States have actually likewise been slow to legalise numerous types of online betting, despite a 2011 Justice Department viewpoint that appeared to eliminate barriers.

While sports wagering is typically viewed in its own category, "it clearly stays to be seen whether it gets the sort of momentum people believe it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting guideline.

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

Now a specialist, he states UK companies ought to approach the market thoroughly, choosing partners with care and preventing errors that might result in regulator backlash.

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

'It will be collaborations'

As legalisation begins, sports betting firms are lobbying to fend off high tax rates, along with demands by US sports leagues, which want to gather a percentage of profits as an "integrity charge".

International companies face the added difficulty of an effective existing video gaming industry, with casino operators, state-run lottos and Native American people that are looking for to defend their grass.

Analysts state UK firms will need to strike collaborations, using their expertise and innovation in order to make inroads.

They point to SBTech's current announcement that it is providing technology for Kentucky Derby operator Churchill Downs as an example of the sort of deals most 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 said.

'It will just depend'

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

The company has actually been purchasing the US market considering that 2011, when it purchased 3 US firms to develop an existence in Nevada.

William Hill now uses about 450 individuals in the US and has actually revealed collaborations with gambling establishments in Iowa and New Jersey.

It works as danger manager for the Delaware Lottery and has actually invested millions along with a regional developer in a New Jersey horse racing track.

Mr Asher stated William Hill has ended up being a household name in Nevada however that's not necessarily the goal all over.

"We definitely mean to have an extremely substantial brand existence in New Jersey," he said. "In other states, it will just depend on regulation and possibly who our local partner is."

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