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

From Tuesday, new guidelines on wagering came into result 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 modifications are the first in what might end up being a wave of legalisation after the Supreme Court last month cleared the method for states to allow sports betting.

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

For UK firms, which are coming to grips with combination, increased online competition and tougher guidelines from UK regulators, the timing is particularly appropriate.

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But the market says counting on the US stays a dangerous bet, as UK companies face complicated state-by-state regulation and competition from established regional interests.

"It's something that we're truly focusing on, however similarly we don't wish to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently bought the US fantasy sports betting site FanDuel.

'Require time'

The US represented 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 hoping to tap into more of that activity after last month's decision, which struck down a 1992 federal law that barred states outside of Nevada and a couple of others from authorising sports betting wagering.

The ruling found 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 regional legislators.

That is expected to lead to substantial variation in how firms get licensed, where sports wagering can happen, and which events are open to speculation - with big implications for the size of the marketplace.

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

Now, he stated: "I think the majority of people ... 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, managing director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports betting in some type by 2023, producing a market with about $6bn in yearly earnings.

But bookies deal with a far various landscape in America than they perform in the UK, where betting stores are a frequent sight.

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

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

States have actually likewise been sluggish to legalise lots of forms of online gaming, despite a 2011 Justice Department viewpoint that appeared to eliminate obstacles.

While sports betting is normally viewed in its own category, "it plainly remains to be seen whether it gets the type of momentum people believe it will," stated Keith Miller, law teacher at Drake University and co-author of a book about sports betting regulation.

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

Now an expert, he says UK firms ought to approach the marketplace carefully, picking partners with caution and avoiding missteps that might cause regulator reaction.

"This is a chance for the American sports gambler ... I'm not sure whether it is a chance for company," he says. "It truly depends on the result of [state] legislation and how the service operators pursue the opportunity."

'It will be collaborations'

As legalisation starts, sports betting wagering companies are lobbying to ward off high tax rates, along with demands by US sports betting leagues, which want to gather a percentage of income as an "stability fee".

International companies deal with the added difficulty of a powerful existing video gaming market, with gambling establishment operators, state-run lottery games and Native American tribes that are seeking to defend their grass.

Analysts say UK companies will need to strike collaborations, using their know-how and technology in order to make inroads.

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

"It will be a win-win for everybody, 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 realities.

The company has been investing in the US market since 2011, when it purchased 3 US companies to establish a presence in Nevada.

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

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

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

"We certainly mean to have an extremely 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 biggest sports wagering market worldwide," he included. "Obviously that's not going to take place on day one."