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

From Tuesday, new guidelines on wagering entered into effect 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 changes are the first in what could become a wave of legalisation after the Supreme Court last month cleared the way for states to permit sports betting wagering.

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

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

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But the industry says relying on the US remains a risky bet, as UK business deal with complex state-by-state guideline and competition from entrenched regional interests.

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

'Take some time'

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

Firms are wishing to use more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states beyond Nevada and a couple of 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 betting wagering, leaving that concern to local lawmakers.

That is expected to lead to substantial variation in how firms get licensed, where sports betting can occur, and which occasions are open to speculation - with huge implications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to practically $20bn annually depending upon factors like the number of states relocate to legalise, Oxford Economics approximated 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 experts KPMG.

Now, he stated: "I think 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, anticipates that 32 states will legalise sports betting 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 do in the UK, where betting stores are a regular sight.

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

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

States have actually likewise been slow to legalise many kinds of online gambling, regardless of a 2011 Justice Department viewpoint that appeared to remove challenges.

While sports betting is normally viewed in its own category, "it plainly stays to be seen whether it gets the sort of momentum individuals 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 primary executive of BetonSports, who was arrested in the US in 2006 for running an offshore online sportsbook and served jail time.

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

"This is a chance for the American sports betting wagerer ... I'm not exactly sure whether it is an opportunity for organization," he says. "It actually depends on the outcome of [state] legislation and how the company operators pursue the opportunity."

'It will be partnerships'

As legalisation starts, sports wagering companies are lobbying to fend off high tax rates, as well as demands by US sports betting leagues, which wish to collect a portion of profits as an "integrity charge".

International companies face the added challenge of an effective existing gaming industry, with casino operators, state-run lottery games and Native American tribes that are looking for to protect their turf.

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

They indicate SBTech's recent statement that it is providing innovation for Kentucky Derby operator Churchill Downs as an example of the sort of offers most likely to materialise.

"It will be a win-win for everyone, but 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 purchasing the US market given that 2011, when it purchased 3 US firms to establish a presence in Nevada.

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

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

Mr Asher stated William Hill has actually ended up being a home name in Nevada but that's not always the objective everywhere.

"We definitely intend to have a very significant brand name presence in New Jersey," he stated. "In other states, it will simply depend upon policy and possibly who our regional partner is."

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