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

From Tuesday, brand-new rules on betting came 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 way for states to allow sports betting.

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

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

Why the gaming industry deals with an unsure future

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

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

"It's something that we're actually focusing on, however equally we don't desire to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently purchased the US fantasy sports website FanDuel.

'Take time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming revenue last year, according to a report by Technavio, external released 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 barred 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 wagering, leaving that question to regional lawmakers.

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

Potential earnings varieties from $4.2 bn to nearly $20bn yearly depending on aspects like the number of states relocate 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 stated: "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 require time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports wagering in some kind by 2023, creating a market with about $6bn in yearly profits.

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

US laws minimal betting mostly to Native American lands and Nevada's Las Vegas strip till reasonably just recently.

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

States have actually also been sluggish to legalise many forms of online gambling, in spite of a 2011 Justice Department opinion that appeared to get rid of challenges.

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

David Carruthers is the former chief executive of BetonSports, who was detained 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, selecting partners with care and preventing bad moves that might cause regulator backlash.

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

'It will be partnerships'

As legalisation starts, sports betting companies are lobbying to ward off high tax rates, as well as requests by US sports leagues, which desire to gather a percentage of revenue as an "stability fee".

International business face the included obstacle of an effective existing gaming market, with gambling establishment operators, state-run lotteries and Native American people that are looking for to protect their grass.

Analysts state UK firms will require to strike collaborations, using their know-how and technology in order to make inroads.

They point to SBTech's current statement 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, however it will be collaborations and it will be driven by innovation," Mr Hawkley said.

'It will just depend'

Joe Asher, chief executive 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 firms to establish an existence in Nevada.

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

It works as threat manager for the Delaware Lottery and has invested millions along with a regional developer in a New Jersey horse racing track.

Mr Asher said William Hill has actually become a family name in Nevada but that's not always the objective all over.

"We definitely mean to have an extremely significant brand presence in New Jersey," he said. "In other states, it will simply depend on guideline and potentially who our regional partner is."

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