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

From Tuesday, new rules on wagering entered result in Delaware, a small east coast state about two hours from Washington.

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

The modifications are the very first in what could become a wave of legalisation after the Supreme Court last month cleared the method for states to allow sports betting.

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

For UK companies, which are coming to grips with consolidation, increased online competition and tougher guidelines from UK regulators, the timing is especially suitable.

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But the industry states relying on the US stays a risky bet, as UK business deal with complex state-by-state guideline and competition from established local interests.

"It's something that we're actually concentrating on, but equally we do not wish to overhype it," said James Midmer, spokesman at Paddy Power Betfair, which recently bought the US dream sports betting site FanDuel.

'Require time'

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

Firms are hoping to use more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states outside of Nevada and a few others from authorising sports betting.

The ruling discovered the law was an over-reach of federal power. But the court it did not really legalise sports betting, leaving that concern to regional legislators.

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

Potential earnings ranges from $4.2 bn to nearly $20bn annually depending on factors like how many states move to legalise, Oxford Economics estimated in a 2017 research study for the American Gaming Association.

"There was a great deal of 'this is going to be big'", stated Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he said: "I believe many people ... are looking 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 require time'."

'Remains to be seen"

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

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

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

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

States have actually likewise been sluggish to legalise many types of online betting, in spite of a 2011 Justice Department viewpoint that appeared to get rid of challenges.

While sports betting is normally viewed in its own category, "it clearly stays 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 wagering guideline.

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

Now an expert, he says UK companies should approach the market carefully, choosing partners with care and avoiding bad moves that could lead to regulator reaction.

"This is a chance for the American sports betting bettor ... I'm uncertain whether it is an opportunity for organization," he says. "It really is reliant on the outcome of [state] legislation and how business operators pursue the opportunity."

'It will be partnerships'

As legalisation starts, sports wagering firms are lobbying to ward off high tax rates, along with demands by US sports leagues, which wish to collect a portion of revenue as an "integrity charge".

International business face the added obstacle of an effective existing gaming industry, with gambling establishment operators, state-run lotteries and Native American people that are seeking to protect their grass.

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

They indicate SBTech's current statement that it is supplying technology 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 said.

'It will simply depend'

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

The company has actually been buying the US market since 2011, when it bought 3 US firms to develop an existence in Nevada.

William Hill now utilizes about 450 individuals 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 actually invested millions along with a regional developer in a New Jersey horse racing track.

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

"We certainly mean to have an extremely substantial brand name presence in New Jersey," he said. "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 added. "Obviously that's not going to occur on the first day."