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

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

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

The changes are the very first in what could become a wave of legalisation after the Supreme Court last month cleared the way for states to allow sports betting wagering.

The market sees a "as soon as in a generation" opportunity to develop a brand-new market in sports betting-mad America, stated Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.

For UK firms, which are grappling with combination, increased online competitors and tougher guidelines from UK regulators, the timing is particularly suitable.

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But the industry states depending on the US remains a risky bet, as UK business deal with complicated state-by-state policy and competition from entrenched local interests.

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

'Take some time'

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

Firms are intending to tap into more of that activity after last month's choice, which overruled a 1992 federal law that barred states outside of Nevada and a few others from authorising sports wagering.

The ruling found 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 cause substantial variation in how companies get licensed, where sports betting can take place, and which events are open to speculation - with huge ramifications for the size of the marketplace.

Potential profits ranges from $4.2 bn to practically $20bn annually depending upon factors 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'", stated Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he said: "I believe many 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, creating a market with about $6bn in yearly profits.

But bookmakers deal with a far various landscape in America than they perform in the UK, where betting shops are a regular sight.

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

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

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

While sports wagering is normally seen in its own category, "it plainly remains to be seen whether it gets the sort of momentum individuals think it will," said Keith Miller, law professor at Drake University and co-author of a book about sports betting guideline.

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

Now a specialist, he says UK companies must approach the marketplace carefully, selecting partners with caution and avoiding bad moves that might result in regulator backlash.

"This is an opportunity for the American sports wagerer ... I'm uncertain whether it is a chance for business," he says. "It actually is reliant on the result of [state] legislation and how business operators pursue the chance."

'It will be partnerships'

As legalisation begins, sports wagering firms are lobbying to ward off high tax rates, as well as requests by US sports betting leagues, which wish to collect a portion of earnings as an "integrity charge".

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

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

They indicate SBTech's recent statement that it is supplying 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 just depend'

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

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

William Hill now uses about 450 people in the US and has actually announced collaborations with gambling establishments in Iowa and New Jersey.

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

Mr Asher stated William Hill has ended up being a home name in Nevada however that's not always the goal all over.

"We definitely plan to have a really considerable brand name existence in New Jersey," he said. "In other states, it will just depend upon regulation and possibly who our regional partner is."

"The US is going to be the greatest sports wagering market on the planet," he added. "Obviously that's not going to occur on day one."