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

From Tuesday, brand-new rules on betting came into impact in Delaware, a tiny east coast state about two 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 enable sports betting.

The industry sees a "as soon as in a generation" opportunity to develop a new market in sports betting-mad America, stated Dublin-based monetary analyst David Jennings, who heads leisure research at Davy.

For UK companies, which are facing debt consolidation, increased online competition and tougher guidelines from UK regulators, the timing is especially appropriate.

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

"It's something that we're actually concentrating on, but equally we don't desire to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently acquired the US dream sports betting website FanDuel.

'Take some time'

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

Firms are hoping to use more of that activity after last month's choice, which overruled a 1992 federal law that disallowed states beyond Nevada and a couple of others from authorising sports betting.

The ruling found 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 expected to result in considerable variation in how companies get accredited, where sports betting can happen, and which events are open to speculation - with big ramifications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to practically $20bn each year depending on factors like how many states transfer to legalise, Oxford Economics estimated 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 experts KPMG.

Now, he said: "I think 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 take time'."

'Remains to be seen"

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

But bookies deal with a far different landscape in America than they perform in the UK, where betting stores are a frequent sight.

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

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

States have actually likewise been slow to legalise numerous types of online betting, regardless of a 2011 Justice Department opinion that appeared to get rid of obstacles.

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

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

Now an expert, he says UK companies must approach the marketplace thoroughly, selecting partners with caution and avoiding errors that might cause regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports betting firms are lobbying to fend off high tax rates, along with requests by US sports betting leagues, which wish to collect a portion of revenue as an "stability charge".

International companies face the added obstacle of an effective existing gaming market, with gambling establishment operators, state-run lotteries and Native American people that are looking for to protect their turf.

Analysts state UK companies will require to strike collaborations, using their know-how and innovation in order to make inroads.

They point to SBTech's recent announcement that it is providing innovation for Kentucky Derby operator Churchill Downs as an example of the kind 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, chief executive at William Hill US, is clear-eyed about the truths.

The business has actually been purchasing the US market considering that 2011, when it bought three US firms to establish an existence in Nevada.

William Hill now utilizes about 450 individuals in the US and has revealed partnerships with gambling establishments in Iowa and New Jersey.

It works as threat supervisor for the Delaware Lottery and has actually invested millions alongside a regional designer in a New Jersey horse racing track.

Mr Asher stated William Hill has become a household name in Nevada but that's not always the objective all over.

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

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