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

From Tuesday, brand-new rules on betting entered into 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 permit sports betting.

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

For UK firms, which are facing debt consolidation, increased online competitors and harder rules from UK regulators, the timing is particularly appropriate.

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But the industry says depending on the US remains a dangerous bet, as UK companies deal with complex state-by-state guideline and competition from entrenched local interests.

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

'Take time'

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

Firms are intending to take advantage of more of that activity after last month's decision, which struck down a 1992 federal law that barred states beyond Nevada and a few others from authorising sports wagering.

The ruling found 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 lead to considerable variation in how companies get licensed, where sports wagering can take place, and which events are open to speculation - with big ramifications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to nearly $20bn annually depending on aspects like the number of states move 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'", stated Will Hawkley, London-based head of leisure for experts KPMG.

Now, he stated: "I think the majority of 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 time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports betting in some kind by 2023, creating a market with about $6bn in yearly income.

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

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

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

States have also been sluggish to legalise numerous kinds of online gambling, regardless of a 2011 Justice Department viewpoint that appeared to get rid of barriers.

While sports wagering is typically viewed in its own category, "it clearly remains to be seen whether it gets the sort of momentum individuals believe it will," said Keith Miller, law teacher at Drake University and co-author of a book about sports betting policy.

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

Now a specialist, he says UK firms must approach the market thoroughly, picking partners with care and preventing bad moves that might lead to regulator backlash.

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

'It will be partnerships'

As legalisation starts, sports wagering companies are lobbying to ward off high tax rates, along with requests by US sports leagues, which desire to collect a portion of revenue as an "stability fee".

International companies face the included difficulty of an effective existing gaming market, with gambling establishment operators, state-run lotteries and Native American people that are seeking to safeguard their grass.

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

They indicate SBTech's recent announcement that it is providing innovation for Kentucky Derby operator Churchill Downs as an example of the sort of deals likely to materialise.

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

'It will simply depend'

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

The business has been investing in the US market because 2011, when it bought 3 US companies to establish a presence in Nevada.

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

It works as danger supervisor for the Delaware Lottery and has invested millions along with a regional developer in a New Jersey horse racing track.

Mr Asher stated William Hill has ended up being a home name in Nevada but that's not always the objective all over.

"We definitely plan to have a really significant brand presence in New Jersey," he stated. "In other states, it will simply depend upon guideline and potentially 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 day one."