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

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

Neighbouring New Jersey might start 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 method for states to enable sports wagering.

The industry sees a "once in a generation" chance to establish 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 facing combination, increased online competitors and harder rules from UK regulators, the timing is particularly suitable.

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But the market states relying on the US remains a dangerous bet, as UK business deal with complex state-by-state regulation and competition from entrenched local interests.

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

'Take time'

The US accounted for 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 decision, which struck down a 1992 federal law that disallowed states beyond Nevada and a few others from authorising sports betting.

The ruling discovered the law was an over-reach of federal power. But the court it did not in fact legalise sports wagering, leaving that concern to regional lawmakers.

That is anticipated to result in substantial variation in how companies get certified, where sports wagering can take place, and which occasions are open to speculation - with big ramifications for the size of the market.

Potential earnings varieties from $4.2 bn to almost $20bn yearly depending on factors like the number 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 big'", said Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he stated: "I think most people ... are looking at this as, 'it's an opportunity but 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 wagering in some form by 2023, creating a market with about $6bn in annual profits.

But bookmakers deal with a far different landscape in America than they carry out in the UK, where betting stores are a regular sight.

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

In the popular imagination, sports wagering has actually long been connected 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 barriers.

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

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

Now a consultant, he says UK companies should approach the marketplace thoroughly, choosing partners with caution and preventing bad moves that could result in regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports betting firms are lobbying to fend off high tax rates, in addition to demands by US sports leagues, which want to collect a percentage of earnings as an "integrity charge".

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

Analysts say UK firms will need to strike collaborations, providing their knowledge 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 everybody, however it will be partnerships and it will be driven by technology," Mr Hawkley stated.

'It will just depend'

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

The company has actually been investing in the US market considering that 2011, when it purchased three US firms to develop an existence in Nevada.

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

It works as threat supervisor for the Delaware Lottery and has actually invested millions alongside a local 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 everywhere.

"We certainly plan to have a really considerable brand name presence in New Jersey," he stated. "In other states, it will just depend upon policy and possibly who our regional partner is."

"The US is going to be the greatest sports betting market in the world," he included. "Obviously that's not going to happen on the first day."