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

From Tuesday, new rules on betting entered effect 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 modifications are the very first in what could end up being a wave of legalisation after the Supreme Court last month cleared the way for states to permit sports wagering.

The industry sees a "once 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 consolidation, increased online competition and harder guidelines from UK regulators, the timing is especially suitable.

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But the industry says counting on the US stays a dangerous bet, as UK business deal with complicated state-by-state regulation and competitors from established regional interests.

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

'Require time'

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

Firms are wishing to take advantage of more of that activity after last month's decision, which struck down a 1992 federal law that barred states outside of 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 actually legalise sports betting, leaving that question to local legislators.

That is expected to lead to substantial variation in how companies get accredited, where sports wagering can take place, and which events are open to speculation - with big implications for the size of the market.

Potential profits ranges from $4.2 bn to practically $20bn annually depending upon aspects like the number of states move to legalise, Oxford Economics estimated in a 2017 research study for the American Gaming Association.

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

Now, he stated: "I believe 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, forecasts that 32 states will legalise sports betting in some type by 2023, producing a market with about $6bn in annual revenue.

But bookies deal with a far various landscape in America than they do in the UK, where betting shops are a regular sight.

US laws restricted betting mostly to Native American lands and Nevada's Las Vegas strip up until fairly just 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 numerous types of online gambling, despite a 2011 Justice Department viewpoint that appeared to eliminate challenges.

While sports betting is normally viewed in its own classification, "it plainly remains to be seen whether it gets the kind of momentum people believe it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting guideline.

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

Now an expert, he states UK companies need to approach the market carefully, choosing partners with care and preventing bad moves that could result in regulator backlash.

"This is a chance for the American sports wagerer ... I'm unsure whether it is a chance for business," he says. "It really depends on the result of [state] legislation and how business operators pursue the chance."

'It will be partnerships'

As legalisation begins, sports betting companies are lobbying to ward off high tax rates, along with requests by US sports leagues, which desire to gather a portion of revenue as an "integrity charge".

International companies face the included challenge of a powerful existing video gaming industry, with gambling establishment operators, state-run lotteries and Native American people that are looking for to protect their grass.

Analysts state UK firms will need to strike partnerships, using their proficiency and innovation in order to make inroads.

They point to SBTech's current announcement that it is offering innovation for Kentucky Derby operator Churchill Downs as an example of the kind of offers 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 simply depend'

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

The company has actually been purchasing the US market considering that 2011, when it bought three US companies to establish an existence in Nevada.

William Hill now uses about 450 individuals in the US and has actually announced collaborations with casinos in Iowa and New Jersey.

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

Mr Asher said William Hill has actually ended up being a home name in Nevada but that's not necessarily the goal everywhere.

"We definitely plan to have a really significant brand name existence 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 included. "Obviously that's not going to occur on the first day."