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

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

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

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

The market sees a "once in a generation" chance 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 companies, which are coming to grips with debt consolidation, increased online competition and tougher guidelines from UK regulators, the timing is particularly suitable.

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But the market states depending on the US remains a dangerous bet, as UK business face complicated state-by-state guideline and competition from established regional interests.

"It's something that we're truly focusing on, however similarly we do not wish to overhype it," stated James Midmer, spokesperson at Paddy Power Betfair, which recently purchased the US dream sports website FanDuel.

'Take time'

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

Firms are hoping to use 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 wagering.

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

That is expected to result in significant variation in how companies get accredited, where sports betting can take place, and which events are open to speculation - with big ramifications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to nearly $20bn every year depending upon aspects like how numerous 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 big'", said Will Hawkley, London-based head of leisure for experts KPMG.

Now, he said: "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 some time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports betting wagering in some type by 2023, developing a market with about $6bn in yearly revenue.

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

US laws minimal betting largely to Native American lands and Nevada's Las Vegas strip until relatively recently.

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

States have also been slow to legalise lots of forms of online gaming, despite a 2011 Justice Department opinion that appeared to get rid of challenges.

While sports wagering is generally viewed in its own category, "it clearly stays to be seen whether it gets the type of momentum individuals believe 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 jailed in the US in 2006 for running an overseas online sportsbook and served prison time.

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

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

'It will be partnerships'

As legalisation starts, sports betting firms are lobbying to ward off high tax rates, as well as requests by US sports leagues, which want to collect a percentage of profits as an "integrity cost".

International business face the added challenge of an effective existing video gaming industry, with casino operators, state-run lotteries and Native American people that are looking for to defend their turf.

Analysts say UK companies will require to strike partnerships, providing their competence and innovation in order to make inroads.

They indicate SBTech's recent statement that it is offering 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 everybody, but it will be collaborations and it will be driven by innovation," Mr Hawkley stated.

'It will just depend'

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

The business has been purchasing the US market given that 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 announced collaborations with casinos in Iowa and New Jersey.

It works as threat supervisor 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 ended up being a family name in Nevada but that's not necessarily the goal everywhere.

"We definitely mean to have a very significant brand existence in New Jersey," he stated. "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 added. "Obviously that's not going to occur on the first day."