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

From Tuesday, brand-new guidelines on betting entered effect in Delaware, a tiny east coast state about two hours from Washington.

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

The modifications are the first in what could become a wave of legalisation after the Supreme Court last month cleared the method for states to permit sports wagering.

The industry sees a "once in a generation" opportunity to establish a brand-new market in sports-mad America, said Dublin-based financial analyst David Jennings, who heads leisure research at Davy.

For UK firms, which are coming to grips with consolidation, increased online competitors and tougher guidelines from UK regulators, the timing is particularly opportune.

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But the industry says counting on the US remains a risky bet, as UK companies face complex state-by-state regulation and competition from entrenched regional interests.

"It's something that we're actually focusing on, but equally we don't wish to overhype it," said James Midmer, spokesperson at Paddy Power Betfair, which just recently acquired the US fantasy sports website FanDuel.

'Require time'

The US accounted for 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 wishing to use more of that activity after last month's decision, which struck down a 1992 federal law that barred states beyond Nevada and a few others from authorising sports betting.

The judgment 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 legislators.

That is anticipated to lead to considerable variation in how companies get licensed, where sports wagering can happen, and which occasions are open to speculation - with big ramifications for the size of the market.

Potential profits ranges from $4.2 bn to practically $20bn each year depending upon factors like how lots of states move to legalise, Oxford Economics estimated in a 2017 research study for the American Gaming Association.

"There was a great deal of 'this is going to be big'", said Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he said: "I believe the majority of 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, managing director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports betting in some type by 2023, creating a market with about $6bn in yearly income.

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

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

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

States have likewise been sluggish to legalise many types of online betting, despite a 2011 Justice Department viewpoint that appeared to get rid of barriers.

While sports betting is generally viewed in its own classification, "it plainly stays to be seen whether it gets the kind of momentum people think it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting policy.

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

Now an expert, he states UK companies should approach the market carefully, choosing partners with care and preventing missteps that could result in regulator backlash.

"This is a chance for the American sports gambler ... I'm unsure whether it is an opportunity for service," he says. "It actually depends on the result of [state] legislation and how the company operators pursue the opportunity."

'It will be collaborations'

As legalisation begins, sports wagering companies are lobbying to ward off high tax rates, as well as demands by US sports leagues, which want to collect a percentage of profits as an "stability cost".

International companies deal with the included obstacle of an effective existing gaming industry, with gambling establishment operators, state-run lottery games and Native American tribes that are looking for to protect their grass.

Analysts say UK firms will require to strike collaborations, using 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 type of offers most likely to materialise.

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

'It will simply depend'

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

The business has been purchasing the US market since 2011, when it bought 3 US firms to establish a presence in Nevada.

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

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

Mr Asher said William Hill has actually become a home name in Nevada however that's not necessarily the objective all over.

"We certainly mean to have an extremely considerable brand existence in New Jersey," he stated. "In other states, it will simply depend upon policy and possibly who our local partner is."

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

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