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

From Tuesday, new guidelines on betting came into result in Delaware, a small east coast state about 2 hours from Washington.

Neighbouring New Jersey might start accepting sports betting 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 method for states to permit sports betting wagering.

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

For UK firms, which are coming to grips with consolidation, increased online competition and harder rules from UK regulators, the timing is especially suitable.

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

"It's something that we're truly focusing on, but equally we do not desire to overhype it," said James Midmer, representative at Paddy Power Betfair, which recently bought the US fantasy sports site FanDuel.

'Take time'

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

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

The judgment discovered the law was an over-reach of federal power. But the court it did not really legalise sports wagering, leaving that question to local legislators.

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

Potential income ranges from $4.2 bn to practically $20bn yearly depending on elements like how many 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'", stated Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he said: "I believe 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, anticipates that 32 states will legalise sports betting in some form by 2023, producing a market with about $6bn in yearly earnings.

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

US laws restricted gaming mostly to Native American lands and Nevada's Las Vegas strip until fairly just 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 lots of kinds of online gaming, regardless of a 2011 Justice Department viewpoint that appeared to eliminate obstacles.

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

David Carruthers is the former president of BetonSports, who was apprehended in the US in 2006 for running an offshore online sportsbook and served jail time.

Now a specialist, he says UK companies ought to approach the market thoroughly, picking partners with care and preventing bad moves that could cause regulator backlash.

"This is a chance for the American sports betting wagerer ... I'm uncertain whether it is a chance for company," he says. "It truly depends on the outcome of [state] legislation and how the company operators pursue the opportunity."

'It will be partnerships'

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

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

Analysts state UK companies will need to strike partnerships, offering their proficiency and technology in order to make inroads.

They indicate SBTech's recent statement 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 just depend'

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

The company has been buying the US market because 2011, when it acquired 3 US firms to establish an existence in Nevada.

William Hill now employs about 450 people in the US and has actually announced partnerships with gambling establishments in Iowa and New Jersey.

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

Mr Asher said William Hill has actually become a household name in Nevada however that's not necessarily the goal everywhere.

"We certainly mean to have a very significant brand existence in New Jersey," he said. "In other states, it will simply depend upon regulation and potentially who our regional partner is."

"The US is going to be the greatest sports betting market worldwide," he included. "Obviously that's not going to occur on the first day."