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

From Tuesday, brand-new rules on betting came into result in Delaware, a small east coast state about two hours from Washington.

Neighbouring New Jersey might start 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 way for states to enable sports betting.

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

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

Why the gambling market faces an unpredictable future

How does prohibited sports betting work and what are the worries?

But the industry says relying on the US remains a dangerous bet, as UK business deal with complex state-by-state policy and competitors from established local interests.

"It's something that we're truly concentrating on, however equally we do not desire to overhype it," stated James Midmer, spokesman at Paddy Power Betfair, which recently bought the US dream sports website FanDuel.

'Take time'

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

Firms are intending to tap into more of that activity after last month's decision, which overruled a 1992 federal law that barred 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, leaving that concern to local lawmakers.

That is anticipated to lead to considerable variation in how firms get accredited, where sports wagering can happen, and which events are open to speculation - with big implications for the size of the market.

Potential income varieties from $4.2 bn to nearly $20bn each year depending upon factors like the number of states transfer 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 huge'", said Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he stated: "I believe most individuals ... are taking a look 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 take time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports wagering in some kind by 2023, developing a market with about $6bn in annual profits.

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

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

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

States have actually also been slow to legalise lots of forms of online gambling, regardless of a 2011 Justice Department opinion that appeared to eliminate obstacles.

While sports betting is typically viewed in its own classification, "it plainly stays to be seen whether it gets the kind of momentum individuals believe 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 jail time.

Now a specialist, he says UK companies should approach the marketplace carefully, selecting partners with caution and avoiding missteps that might cause regulator reaction.

"This is an opportunity for the American sports gambler ... I'm not exactly sure whether it is a chance for business," he states. "It truly depends on the outcome of [state] legislation and how the business operators pursue the opportunity."

'It will be collaborations'

As legalisation begins, sports wagering companies are lobbying to fend off high tax rates, in addition to demands by US sports leagues, which desire to gather a portion of income as an "integrity fee".

International business face the included difficulty of a powerful existing video gaming market, with casino operators, state-run lotteries and Native American people that are looking for to protect their grass.

Analysts say UK companies will require to strike partnerships, offering their expertise 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, but it will be collaborations and it will be driven by technology," Mr Hawkley stated.

'It will just depend'

Joe Asher, chief executive at William Hill US, is clear-eyed about the truths.

The business has been purchasing the US market given that 2011, when it bought 3 US companies to develop an existence in Nevada.

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

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

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

"We certainly intend to have a really substantial brand name existence in New Jersey," he said. "In other states, it will just depend on regulation and potentially who our local partner is."

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