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

From Tuesday, brand-new guidelines on betting entered effect 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 end up being a wave of legalisation after the Supreme Court last month cleared the way for states to allow sports betting.

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

For UK firms, which are coming to grips with consolidation, increased online competitors and tougher rules from UK regulators, the timing is particularly suitable.

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But the industry says counting on the US remains a risky bet, as UK business face complex state-by-state guideline and competition from entrenched local interests.

"It's something that we're really concentrating on, but equally we do not want to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently purchased the US fantasy sports site FanDuel.

'Take some time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming income 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 decision, which overruled a 1992 federal law that disallowed states beyond 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 in fact legalise sports wagering, leaving that concern to regional legislators.

That is expected to cause considerable variation in how companies get licensed, where sports betting can take place, and which events are open to speculation - with huge implications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to almost $20bn every year depending on factors like the number of states transfer to legalise, Oxford Economics approximated in a 2017 study for the American Gaming Association.

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

Now, he stated: "I believe many people ... are looking 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, 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 annual revenue.

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

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

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

States have also been sluggish to legalise many types of online gaming, in spite of a 2011 Justice Department viewpoint that appeared to eliminate challenges.

While sports wagering is usually viewed in its own category, "it plainly remains to be seen whether it gets the sort of momentum people think it will," said Keith Miller, law professor at Drake University and co-author of a book about sports wagering policy.

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

Now a consultant, he says UK firms ought to approach the marketplace thoroughly, selecting partners with caution and preventing errors that could lead to regulator backlash.

"This is an opportunity for the American sports wagerer ... I'm not sure whether it is a chance for organization," he says. "It truly is dependent on the result of [state] legislation and how business operators pursue the chance."

'It will be partnerships'

As legalisation starts, sports betting wagering firms are lobbying to ward off high tax rates, in addition to requests by US sports leagues, which desire to collect a portion of profits as an "stability cost".

International companies face the added obstacle of a powerful existing gaming industry, with gambling establishment operators, state-run lotteries and Native American tribes that are looking for to safeguard their grass.

Analysts say UK firms will require to strike partnerships, offering their proficiency and innovation in order to make inroads.

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

"It will be a win-win for everybody, but it will be collaborations 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 business has actually been purchasing the US market given that 2011, when it acquired three US companies to establish a presence in Nevada.

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

It works as risk supervisor for the Delaware Lottery and has invested millions alongside a local developer in a New Jersey horse racing track.

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

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

"The US is going to be the greatest sports betting market on the planet," he added. "Obviously that's not going to take place on the first day."