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

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

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

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

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

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

Why the gambling industry faces an unsure future

How does unlawful sports betting work and what are the worries?

But the industry says counting on the US remains a risky bet, as UK companies deal with complex state-by-state policy and competitors from entrenched regional interests.

"It's something that we're really focusing on, however similarly we don't wish to overhype it," said James Midmer, representative at Paddy Power Betfair, which recently acquired the US fantasy sports betting site 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 wanting to use more of that activity after last month's choice, which overruled a 1992 federal law that barred states beyond 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 in fact legalise sports betting, leaving that concern to local legislators.

That is expected to cause considerable variation in how companies get certified, where sports betting can occur, and which events are open to speculation - with huge ramifications for the size of the market.

Potential profits varieties from $4.2 bn to nearly $20bn each year depending upon factors like how lots of states transfer to legalise, Oxford Economics approximated in a 2017 study for the American Gaming Association.

"There was a great deal of 'this is going to be substantial'", stated Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he said: "I believe the majority of people ... are taking a look 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, forecasts that 32 states will legalise sports betting in some form by 2023, producing a market with about $6bn in annual revenue.

But bookmakers face a far different landscape in America than they perform in the UK, where wagering shops are a regular sight.

US laws limited gaming largely to Native American lands and Nevada's Las Vegas strip up until fairly just recently.

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

States have likewise been sluggish to legalise many forms of online gambling, in spite of a 2011 Justice Department opinion that appeared to remove barriers.

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

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

Now a specialist, he says UK companies should approach the marketplace carefully, choosing partners with care and avoiding bad moves that could cause regulator backlash.

"This is a chance for the American sports wagerer ... I'm not sure whether it is an opportunity for organization," he states. "It truly is dependent on the result of [state] legislation and how the organization operators pursue the opportunity."

'It will be collaborations'

As legalisation starts, sports betting wagering companies are lobbying to fend off high tax rates, as well as demands by US sports leagues, which want to gather a percentage of earnings as an "stability charge".

International business deal with the added obstacle of an effective existing video gaming industry, with gambling establishment operators, state-run lottery games and Native American people that are seeking to protect their turf.

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

They point to SBTech's recent announcement that it is providing technology 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, however it will be partnerships 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 business has been investing in the US market because 2011, when it bought 3 US firms to establish an existence in Nevada.

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

It works as danger supervisor for the Delaware Lottery and has invested millions together with a local developer in a New Jersey horse racing track.

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

"We definitely intend to have an extremely considerable brand 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 biggest sports betting market on the planet," he included. "Obviously that's not going to occur on day one."