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

From Tuesday, brand-new rules on wagering came into effect in Delaware, a tiny east coast state about two hours from Washington.

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

The changes are the first in what might become a wave of legalisation after the Supreme Court last month cleared the method for states to enable sports betting.

The industry sees a "as soon as in a generation" opportunity to establish a brand-new market in sports-mad America, said Dublin-based monetary expert David Jennings, who heads leisure research study at Davy.

For UK companies, which are grappling with debt consolidation, increased online competitors and harder rules from UK regulators, the timing is particularly suitable.

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But the market states depending on the US remains a risky bet, as UK business face complex state-by-state guideline and competitors from established regional interests.

"It's something that we're actually focusing on, however similarly we do not wish to overhype it," stated James Midmer, spokesman at Paddy Power Betfair, which recently acquired the US fantasy sports site FanDuel.

'Take time'

The US represented about 23% of the world's $244bn (₤ 182bn) in gaming income in 2015, 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 decision, which struck down 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 actually legalise sports betting, leaving that question to regional lawmakers.

That is anticipated to cause substantial variation in how firms get licensed, where sports wagering can take place, and which occasions are open to speculation - with huge implications for the size of the market.

Potential earnings varieties from $4.2 bn to practically $20bn every year depending on factors like how lots of states relocate 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 substantial'", stated Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he stated: "I believe many individuals ... are looking 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 require time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports wagering in some form by 2023, creating a market with about $6bn in annual revenue.

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

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

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

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

While sports betting is normally viewed in its own category, "it clearly stays to be seen whether it gets the type of momentum individuals think 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 detained in the US in 2006 for running an overseas online sportsbook and served prison time.

Now a consultant, he says UK companies ought to approach the market thoroughly, choosing partners with caution and preventing mistakes that might cause regulator backlash.

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

'It will be partnerships'

As legalisation starts, sports betting firms are lobbying to fend off high tax rates, along with demands by US sports leagues, which desire to gather a portion of income as an "stability cost".

International companies deal with the included obstacle of a powerful existing gaming industry, with gambling establishment operators, state-run lottery games and Native American tribes that are seeking to protect their turf.

Analysts state UK companies will require to strike collaborations, using their competence and technology 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 type of offers likely to materialise.

"It will be a win-win for everyone, but it will be partnerships 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 truths.

The company has been buying the US market considering that 2011, when it purchased 3 US companies to establish an existence in Nevada.

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

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

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

"We definitely plan to have an extremely considerable brand existence in New Jersey," he stated. "In other states, it will simply depend upon policy and possibly who our local partner is."

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