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

From Tuesday, brand-new guidelines on betting came into impact in Delaware, a small east coast state about two hours from Washington.

Neighbouring New Jersey might start accepting sports betting bets as early as Friday.

The changes are the very first in what might end up being a wave of legalisation after the Supreme Court last month cleared the method for states to enable sports wagering.

The market sees a "as soon as in a generation" chance to establish a new market in sports betting-mad America, said Dublin-based monetary analyst David Jennings, who heads leisure research study at Davy.

For UK companies, which are facing combination, increased online competition and tougher rules from UK regulators, the timing is especially opportune.

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But the industry says counting on the US stays a dangerous bet, as UK companies face complex state-by-state guideline and competitors from entrenched regional interests.

"It's something that we're truly concentrating on, however equally we do not want to overhype it," said James Midmer, spokesperson at Paddy Power Betfair, which just recently bought the US dream sports betting site FanDuel.

'Take some time'

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

Firms are hoping to take advantage of more of that activity after last month's choice, which overruled a 1992 federal law that disallowed states beyond Nevada and a couple of others from authorising sports betting.

The ruling found the law was an over-reach of federal power. But the court it did not really legalise sports betting, leaving that concern to local lawmakers.

That is anticipated to lead to substantial variation in how companies get licensed, where sports betting wagering can occur, and which events are open to speculation - with huge ramifications for the size of the market.

Potential earnings ranges from $4.2 bn to almost $20bn annually depending on elements like how lots of states move to legalise, Oxford Economics approximated in a 2017 research study for the American Gaming Association.

"There was a great deal of 'this is going to be huge'", 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 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, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports wagering in some kind by 2023, producing a market with about $6bn in annual income.

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

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

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

States have actually likewise been slow to legalise numerous kinds of online gambling, in spite of a 2011 Justice Department opinion that appeared to eliminate challenges.

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

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

Now an expert, he says UK firms must approach the market carefully, choosing partners with care and avoiding mistakes that might cause regulator backlash.

"This is an opportunity for the American sports betting wagerer ... I'm unsure whether it is a chance for service," he states. "It truly depends on the outcome of [state] legislation and how the company operators pursue the chance."

'It will be partnerships'

As legalisation begins, sports betting wagering firms are lobbying to ward off high tax rates, along with demands by US sports leagues, which desire to collect a portion of earnings as an "integrity cost".

International business deal with the included obstacle of an effective existing video gaming market, with casino operators, state-run lottery games and Native American tribes that are looking for to safeguard their turf.

Analysts say UK companies will need to strike partnerships, providing their proficiency and technology in order to make inroads.

They point to SBTech's recent statement that it is providing technology for Kentucky Derby operator Churchill Downs as an example of the type of deals most likely to materialise.

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

'It will just depend'

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

The company has actually been purchasing the US market since 2011, when it purchased 3 US firms to develop an existence in Nevada.

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

It works as risk manager for the Delaware Lottery and has invested millions along with a local designer in a New Jersey horse racing track.

Mr Asher said William Hill has actually ended up being a family name in Nevada however that's not always the goal everywhere.

"We definitely plan to have an extremely considerable brand name presence in New Jersey," he stated. "In other states, it will simply depend upon regulation and potentially who our regional partner is."

"The US is going to be the most significant sports wagering market in the world," he added. "Obviously that's not going to happen on day one."