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

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

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

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

For UK companies, which are coming to grips with debt consolidation, increased online competitors and tougher rules from UK regulators, the timing is particularly appropriate.

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But the market says relying on the US remains a risky bet, as UK companies deal with complicated state-by-state regulation and competitors from established regional interests.

"It's something that we're actually concentrating on, but similarly we do not desire to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently bought the US dream sports site FanDuel.

'Take some time'

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

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

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

That is anticipated to cause significant variation in how companies get licensed, where sports betting can happen, and which occasions are open to speculation - with huge ramifications for the size of the market.

Potential income varieties from $4.2 bn to almost $20bn each year depending on aspects like how many 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 substantial'", stated Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he stated: "I believe many people ... are taking a look 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 require time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports betting in some kind by 2023, creating a market with about $6bn in yearly revenue.

But bookies face a far different landscape in America than they perform in the UK, where betting shops are a regular sight.

US laws restricted gambling mostly to Native American lands and Nevada's Las Vegas strip up until relatively recently.

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

States have likewise been sluggish to legalise lots of types of online gambling, regardless of a 2011 Justice Department opinion that appeared to remove challenges.

While sports betting is usually viewed in its own classification, "it clearly stays to be seen whether it gets the sort of momentum people believe it will," said Keith Miller, law professor at Drake University and co-author of a book about sports betting guideline.

David Carruthers is the previous chief executive of BetonSports, who was apprehended in the US in 2006 for running an overseas online sportsbook and served prison time.

Now a consultant, he says UK firms should approach the marketplace thoroughly, choosing partners with caution and avoiding mistakes that might lead to regulator backlash.

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

'It will be collaborations'

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

International business deal with the added challenge of a powerful existing video gaming market, with gambling establishment operators, state-run lottos and Native American tribes that are seeking to safeguard their turf.

Analysts say UK companies will require to strike collaborations, using their expertise and innovation in order to make inroads.

They point to SBTech's current announcement that it is offering technology for Kentucky Derby operator Churchill Downs as an example of the kind of deals likely to materialise.

"It will be a win-win for everyone, however it will be partnerships and it will be driven by technology," Mr Hawkley said.

'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 considering that 2011, when it bought 3 US companies to develop an existence in Nevada.

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

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

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

"We definitely intend to have a really considerable brand name presence in New Jersey," he said. "In other states, it will simply depend upon regulation and potentially who our local 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 occur on the first day."