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

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

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

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

The industry sees a "when in a generation" chance to develop a brand-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 consolidation, increased online competition and tougher guidelines from UK regulators, the timing is particularly opportune.

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

"It's something that we're truly focusing on, however equally we do not want to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently acquired the US dream sports website FanDuel.

'Require time'

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

Firms are wishing to use more of that activity after last month's choice, which struck down a 1992 federal law that disallowed states outside of Nevada and a couple of others from authorising sports betting.

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

That is expected to result in significant variation in how companies get certified, where sports betting can take place, and which events are open to speculation - with big ramifications for the size of the market.

Potential earnings ranges from $4.2 bn to practically $20bn annually depending on elements like how many states relocate to legalise, Oxford Economics approximated in a 2017 research 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 experts KPMG.

Now, he stated: "I believe the majority of people ... are looking 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, predicts that 32 states will legalise sports wagering in some kind by 2023, creating a market with about $6bn in annual revenue.

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

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

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

States have actually also been sluggish to legalise many types of online betting, despite a 2011 Justice Department opinion that appeared to remove obstacles.

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

David Carruthers is the former president 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 carefully, picking partners with care and preventing bad moves that could result in regulator backlash.

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

'It will be collaborations'

As legalisation starts, sports betting companies are lobbying to ward off high tax rates, in addition to requests by US sports leagues, which want to gather a portion of profits as an "stability fee".

International business face the added challenge of an effective existing video gaming market, with gambling establishment operators, state-run lottos and Native American tribes that are seeking to defend their turf.

Analysts state UK companies will need to strike collaborations, providing their knowledge and innovation in order to make inroads.

They indicate SBTech's current announcement that it is supplying technology for Kentucky Derby operator Churchill Downs as an example of the kind 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, president at William Hill US, is clear-eyed about the truths.

The company has been investing in the US market given that 2011, when it purchased three US firms to develop a presence in Nevada.

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

It works as danger supervisor for the Delaware Lottery and has invested millions together with a local designer in a New Jersey horse racing track.

Mr Asher stated William Hill has become a household name in Nevada but that's not necessarily the objective everywhere.

"We certainly mean to have a very considerable brand name existence in New Jersey," he stated. "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 on the planet," he included. "Obviously that's not going to take place on the first day."