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

From Tuesday, new guidelines 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 changes 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 industry sees a "when in a generation" chance to develop a brand-new market in sports-mad America, said Dublin-based financial expert David Jennings, who heads leisure research at Davy.

For UK companies, which are coming to grips with combination, increased online competitors and tougher rules from UK regulators, the timing is particularly opportune.

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But the market states relying on the US remains a dangerous bet, as UK business face complicated state-by-state regulation and competition from entrenched regional interests.

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

'Take time'

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

Firms are wishing to take advantage of more of that activity after last month's choice, which struck down a 1992 federal law that barred states outside of Nevada and a couple of others from authorising sports wagering.

The judgment 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 expected to lead to considerable variation in how firms get certified, where sports wagering can take place, and which occasions are open to speculation - with big ramifications for the size of the market.

Potential revenue varieties from $4.2 bn to almost $20bn each year depending upon elements like the number of states transfer to legalise, Oxford Economics approximated in a 2017 research 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 consultants KPMG.

Now, he said: "I think the majority of people ... are taking a look 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 require time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports wagering in some form by 2023, producing a market with about $6bn in yearly revenue.

But bookies face a far various landscape in America than they do in the UK, where wagering stores are a frequent sight.

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

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

States have also been sluggish to legalise lots of kinds of online gaming, regardless of a 2011 Justice Department viewpoint that appeared to eliminate obstacles.

While sports betting is usually seen in its own classification, "it plainly remains to be seen whether it gets the type 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 primary executive of BetonSports, who was detained 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 marketplace carefully, selecting partners with caution and preventing bad moves that might lead to regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports wagering companies are lobbying to ward off high tax rates, as well as requests by US sports leagues, which wish to collect a percentage of revenue as an "stability charge".

International companies face the included challenge of a powerful existing video gaming industry, with gambling establishment operators, state-run lottos and Native American tribes that are looking for to defend their grass.

Analysts say UK companies will need to strike partnerships, providing their expertise and innovation in order to make inroads.

They indicate SBTech's recent statement that it is providing innovation for Kentucky Derby operator Churchill Downs as an example of the type of offers likely to materialise.

"It will be a win-win for everyone, however it will be collaborations and it will be driven by innovation," Mr Hawkley stated.

'It will just depend'

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

The company has actually been buying the US market because 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 announced partnerships with casinos in Iowa and New Jersey.

It works as risk 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 actually ended up being a family name in Nevada however that's not necessarily the objective everywhere.

"We definitely plan to have a very substantial brand name presence in New Jersey," he said. "In other states, it will just depend on policy and possibly who our regional partner is."

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