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

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

Neighbouring New Jersey could begin accepting sports betting bets as early as Friday.

The modifications are the first in what could end up being 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" chance to develop a brand-new market in sports betting-mad America, said Dublin-based monetary expert David Jennings, who heads leisure research study at Davy.

For UK firms, which are facing debt consolidation, increased online competition and tougher rules from UK regulators, the timing is particularly opportune.

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

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

'Take some time'

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

Firms are wanting to take advantage of more of that activity after last month's decision, which overruled a 1992 federal law that disallowed states beyond Nevada and a few others from authorising sports betting.

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

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 big ramifications for the size of the marketplace.

Potential profits ranges from $4.2 bn to almost $20bn each year depending on aspects like the number of 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 huge'", stated Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he said: "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 time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, forecasts that 32 states will legalise sports wagering in some kind by 2023, developing a market with about $6bn in yearly earnings.

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

US laws restricted gaming largely to Native American lands and Nevada's Las Vegas strip up until reasonably just recently.

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

States have likewise been slow to legalise lots of forms of online betting, despite a 2011 Justice Department opinion that appeared to eliminate challenges.

While sports betting is normally seen in its own category, "it plainly stays to be seen whether it gets the type of momentum individuals believe it will," said Keith Miller, law teacher at Drake University and co-author of a book about sports betting guideline.

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 an expert, he says UK companies ought to approach the market carefully, selecting partners with caution and avoiding errors that might lead to regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports betting firms are lobbying to ward off high tax rates, along with requests by US sports leagues, which want to gather a portion of revenue as an "stability cost".

International business face the included obstacle of a powerful existing video gaming industry, with gambling establishment operators, state-run lottery games and Native American people that are seeking to safeguard their grass.

Analysts say UK companies will require to strike partnerships, 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 deals likely to materialise.

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

'It will just depend'

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

The company has been purchasing the US market considering that 2011, when it purchased 3 US companies to develop an existence in Nevada.

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

It works as threat manager for the Delaware Lottery and has actually invested millions together with a regional developer in a New Jersey horse racing track.

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

"We certainly intend to have a very substantial brand presence in New Jersey," he said. "In other states, it will simply depend upon regulation and potentially who our local partner is."

"The US is going to be the greatest sports wagering market in the world," he included. "Obviously that's not going to occur on day one."