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

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

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

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

The market sees a "when in a generation" opportunity to develop a 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 consolidation, increased online competitors and tougher rules from UK regulators, the timing is especially suitable.

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But the industry says counting on the US stays a dangerous bet, as UK companies face complicated state-by-state regulation and competition from established regional interests.

"It's something that we're really focusing on, however similarly we don't wish to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently purchased the US fantasy sports site FanDuel.

'Take time'

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

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

The judgment found the law was an over-reach of federal power. But the court it did not actually legalise sports wagering, leaving that concern to regional legislators.

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

Potential income ranges from $4.2 bn to almost $20bn every year depending upon aspects like how lots of states transfer to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

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

Now, he stated: "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, anticipates that 32 states will legalise sports wagering in some kind by 2023, producing a market with about $6bn in yearly profits.

But bookies face a far various landscape in America than they carry out in the UK, where wagering shops are a frequent sight.

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

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

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

While sports betting is usually seen 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 wagering policy.

David Carruthers is the former chief executive of BetonSports, who was apprehended in the US in 2006 for running an overseas online sportsbook and served jail time.

Now a specialist, he states UK companies need to approach the marketplace thoroughly, choosing partners with caution and preventing mistakes that could cause regulator reaction.

"This is a chance for the American sports gambler ... I'm not sure whether it is an opportunity for business," he says. "It really depends on the result of [state] legislation and how business operators pursue the chance."

'It will be partnerships'

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

International business face the added obstacle of an effective existing video gaming industry, with casino operators, state-run lottos and Native American tribes that are looking for to protect their turf.

Analysts state UK firms will need to strike collaborations, using their expertise and innovation in order to make inroads.

They indicate SBTech's recent announcement that it is offering 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, however it will be collaborations 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 investing in the US market because 2011, when it purchased three US firms to develop an existence in Nevada.

William Hill now employs about 450 people in the US and has actually revealed partnerships with casinos in Iowa and New Jersey.

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

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

"We definitely intend to have a very considerable brand name existence in New Jersey," he stated. "In other states, it will simply depend upon policy and potentially 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 the first day."