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

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

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

The changes are the very first in what might end up being a wave of legalisation after the Supreme Court last month cleared the method for states to allow sports wagering.

The market sees a "when in a generation" chance to establish a new market in sports-mad America, said Dublin-based monetary expert David Jennings, who heads leisure research study at Davy.

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

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But the market says relying on the US stays a dangerous bet, as UK companies deal with complicated state-by-state guideline and competitors from established local interests.

"It's something that we're truly focusing on, but equally we don't wish to overhype it," said James Midmer, spokesperson at Paddy Power Betfair, which recently purchased the US dream sports site FanDuel.

'Require time'

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

Firms are intending to tap into more of that activity after last month's choice, which overruled a 1992 federal law that disallowed states beyond Nevada and a few others from authorising sports wagering.

The ruling discovered the law was an over-reach of federal power. But the court it did not actually legalise sports betting, leaving that concern to local legislators.

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

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

"There was a lot of 'this is going to be huge'", stated Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he stated: "I think many people ... are looking 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 some time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports wagering in some type by 2023, developing a market with about $6bn in annual income.

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

US laws minimal gaming mostly to Native American lands and Nevada's Las Vegas strip till fairly recently.

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

States have actually likewise been sluggish to legalise numerous kinds of online betting, despite a 2011 Justice Department opinion that appeared to eliminate barriers.

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

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

Now a consultant, he states UK companies need to approach the market carefully, picking partners with caution and avoiding bad moves that could cause regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports wagering firms are lobbying to ward off high tax rates, in addition to requests by US sports leagues, which wish to gather a percentage of income as an "integrity cost".

International companies deal with the added challenge of an effective existing video gaming market, with casino operators, state-run lottos and Native American tribes that are seeking to defend their grass.

Analysts say UK companies will need to strike collaborations, providing their know-how and innovation in order to make inroads.

They indicate SBTech's recent statement that it is supplying technology for Kentucky Derby operator Churchill Downs as an example of the kind of offers most likely to materialise.

"It will be a win-win for everyone, but it will be partnerships and it will be driven by technology," Mr Hawkley stated.

'It will simply depend'

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

The company has actually been purchasing the US market because 2011, when it bought 3 US firms to establish 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 threat supervisor 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 household name in Nevada however that's not necessarily the objective everywhere.

"We definitely plan to have a very substantial brand presence in New Jersey," he stated. "In other states, it will simply depend upon guideline and potentially who our regional partner is."

"The US is going to be the biggest sports wagering market worldwide," he added. "Obviously that's not going to happen on day one."