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

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

Neighbouring New Jersey might start accepting sports bets as early as Friday.

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

The industry sees a "once in a generation" opportunity to develop a new market in sports-mad America, said Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.

For UK firms, which are coming to grips with debt consolidation, increased online competition and harder rules from UK regulators, the timing is particularly suitable.

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But the market says counting on the US remains a dangerous bet, as UK business face complex state-by-state policy and competition from established local interests.

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

'Require time'

The US represented 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 intending to tap into 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 wagering.

The judgment discovered the law was an over-reach of federal power. But the court it did not really legalise sports betting, leaving that question to regional legislators.

That is expected to result in significant variation in how companies get accredited, where sports wagering can take place, 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 upon factors like the number of states relocate 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 substantial'", said Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he stated: "I think many 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, managing director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports wagering in some kind by 2023, creating a market with about $6bn in annual revenue.

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

US laws limited gambling largely to Native American lands and Nevada's Las Vegas strip until relatively recently.

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

States have actually also been sluggish to legalise many kinds of online gaming, in spite of a 2011 Justice Department opinion that appeared to eliminate challenges.

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

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

Now a consultant, he says UK firms must approach the marketplace carefully, choosing partners with caution and preventing missteps that could cause regulator reaction.

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

'It will be partnerships'

As legalisation starts, sports wagering firms are lobbying to fend off high tax rates, along with requests by US sports leagues, which want to collect a percentage of earnings as an "integrity cost".

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

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

They point to SBTech's recent statement that it is supplying innovation for Kentucky Derby operator Churchill Downs as an example of the sort of offers likely to materialise.

"It will be a win-win for everybody, however it will be collaborations and it will be driven by innovation," Mr Hawkley said.

'It will just depend'

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

The business has been buying the US market since 2011, when it purchased 3 US firms to develop an existence in Nevada.

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

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

Mr Asher stated William Hill has ended up being a family name in Nevada however that's not necessarily the objective all over.

"We definitely plan to have an extremely significant brand name existence in New Jersey," he stated. "In other states, it will simply depend on regulation and possibly who our local partner is."

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