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

From Tuesday, brand-new rules on wagering came into effect in Delaware, a tiny east coast state about 2 hours from Washington.

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

The changes are the very first in what could 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" chance to establish a brand-new market in sports betting-mad America, said Dublin-based financial expert David Jennings, who heads leisure research study at Davy.

For UK firms, which are grappling with debt consolidation, increased online competitors and tougher rules from UK regulators, the timing is especially appropriate.

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But the industry states counting on the US remains a dangerous bet, as UK companies deal with complex state-by-state regulation and competitors from established local interests.

"It's something that we're truly focusing on, however equally we don't want to overhype it," said James Midmer, representative at Paddy Power Betfair, which recently bought the US fantasy sports website FanDuel.

'Require time'

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

Firms are wanting 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 few others from authorising sports betting.

The ruling found the law was an over-reach of federal power. But the court it did not actually legalise sports wagering, leaving that question to regional lawmakers.

That is anticipated to cause substantial variation in how companies get certified, where sports betting can happen, and which occasions are open to speculation - with huge implications for the size of the marketplace.

Potential income varieties from $4.2 bn to practically $20bn annually depending upon elements like the number of states move to legalise, Oxford Economics approximated in a 2017 research 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 stated: "I think most people ... are looking at this as, 'it's a chance 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 wagering in some type by 2023, producing a market with about $6bn in annual earnings.

But bookmakers deal with a far different landscape in America than they carry out in the UK, where wagering shops are a frequent sight.

US laws minimal gambling mainly to Native American lands and Nevada's Las Vegas strip till fairly recently.

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

States have also been sluggish to legalise many kinds of online gambling, in spite of a 2011 Justice Department opinion that appeared to remove barriers.

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

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

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

"This is a chance for the American sports betting bettor ... I'm not sure whether it is a chance for company," he states. "It actually depends on the result of [state] legislation and how business operators pursue the opportunity."

'It will be partnerships'

As legalisation begins, sports betting companies are lobbying to fend off high tax rates, in addition to demands by US sports leagues, which wish to gather a percentage of income as an "integrity cost".

International companies deal with the included difficulty of an effective existing gaming industry, with casino operators, state-run lottos and Native American people that are seeking to safeguard their grass.

Analysts say UK firms will need to strike partnerships, offering their know-how and technology in order to make inroads.

They point to SBTech's recent statement that it is offering innovation 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 everybody, however it will be partnerships and it will be driven by technology," Mr Hawkley stated.

'It will just depend'

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

The company has actually been investing in the US market considering that 2011, when it acquired 3 US companies to develop a presence in Nevada.

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

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

Mr Asher stated William Hill has ended up being a family name in Nevada however that's not always the objective all over.

"We definitely plan to have a really considerable brand name existence in New Jersey," he stated. "In other states, it will simply depend on regulation and potentially who our regional partner is."

"The US is going to be the most significant sports betting market in the world," he included. "Obviously that's not going to happen on day one."