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

From Tuesday, brand-new rules on betting entered into effect in Delaware, a small east coast state about 2 hours from Washington.

Neighbouring New Jersey could 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 way for states to enable sports wagering.

The market sees a "when in a generation" chance to establish a brand-new market in sports-mad America, stated Dublin-based monetary expert David Jennings, who heads leisure research study at Davy.

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

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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 competitors from established regional interests.

"It's something that we're truly concentrating on, however similarly we don't wish to overhype it," stated James Midmer, spokesman at Paddy Power Betfair, which just recently purchased the US fantasy sports website FanDuel.

'Take time'

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

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

That is anticipated to result in considerable variation in how companies get licensed, where sports betting can happen, and which events are open to speculation - with big ramifications for the size of the marketplace.

Potential revenue varieties from $4.2 bn to practically $20bn yearly depending on aspects like the number of states move to legalise, Oxford Economics approximated in a 2017 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 said: "I believe the majority of 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 time'."

'Remains to be seen"

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

But bookies deal with a far different landscape in America than they carry out in the UK, where wagering shops are a frequent sight.

US laws limited gambling largely to Native American lands and Nevada's Las Vegas strip up until relatively just 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 slow to legalise lots of forms of online gaming, regardless of a 2011 Justice Department opinion that appeared to eliminate obstacles.

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

Now an expert, he states UK companies must approach the marketplace thoroughly, choosing partners with caution and preventing missteps that might lead to regulator backlash.

"This is an opportunity for the American sports gambler ... I'm unsure whether it is a chance for organization," he states. "It really is reliant on the result of [state] legislation and how the business operators pursue the chance."

'It will be collaborations'

As legalisation begins, sports wagering firms are lobbying to fend off high tax rates, in addition to demands by US sports leagues, which want to collect a percentage of revenue as an "stability charge".

International companies face the included obstacle of a powerful existing gaming market, with gambling establishment operators, state-run lottos and Native American tribes that are looking for to safeguard their grass.

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

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

"It will be a win-win for everyone, but it will be collaborations and it will be driven by innovation," Mr Hawkley stated.

'It will simply depend'

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

The company has been purchasing the US market since 2011, when it bought three US companies to establish a presence in Nevada.

William Hill now employs about 450 people in the US and has revealed partnerships with casinos 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 said William Hill has become a home name in Nevada but that's not necessarily the objective everywhere.

"We certainly mean to have an extremely significant brand existence in New Jersey," he said. "In other states, it will just depend on guideline and possibly who our local partner is."

"The US is going to be the greatest sports betting market worldwide," he included. "Obviously that's not going to happen on the first day."