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

From Tuesday, new guidelines on wagering 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 end up being a wave of legalisation after the Supreme Court last month cleared the method for states to allow sports betting wagering.

The market sees a "once in a generation" chance to establish a new market in sports-mad America, stated Dublin-based monetary expert 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 especially suitable.

Why the betting industry faces an uncertain future

How does prohibited sports betting work and what are the worries?

But the industry states counting on the US remains a risky bet, as UK companies face complex state-by-state policy and competition from established regional interests.

"It's something that we're really concentrating on, however equally we don't wish to overhype it," said James Midmer, spokesperson at Paddy Power Betfair, which recently acquired the US fantasy sports site FanDuel.

'Require time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming income last year, 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 choice, which struck down a 1992 federal law that barred states outside of Nevada and a few others from authorising sports betting.

The judgment found the law was an over-reach of federal power. But the court it did not in fact legalise sports betting, leaving that question to regional legislators.

That is anticipated to lead to substantial variation in how firms get licensed, where sports betting can happen, and which events are open to speculation - with big implications for the size of the market.

Potential earnings varieties from $4.2 bn to almost $20bn yearly depending on factors like how lots of states move to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

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

Now, he stated: "I believe many people ... are looking at this as, 'it's a chance but 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, forecasts that 32 states will legalise sports wagering in some kind by 2023, developing a market with about $6bn in annual earnings.

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

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

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

States have likewise been sluggish to legalise many kinds of online betting, regardless of a 2011 Justice Department viewpoint that appeared to remove obstacles.

While sports wagering is typically seen in its own category, "it plainly remains to be seen whether it gets the sort of momentum people believe it will," said Keith Miller, law professor at Drake University and co-author of a book about sports wagering guideline.

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

Now a consultant, he says UK companies need to approach the marketplace thoroughly, choosing partners with care and avoiding errors that could lead to regulator reaction.

"This is a chance for the American sports bettor ... 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 opportunity."

'It will be collaborations'

As legalisation begins, sports betting firms are lobbying to fend off high tax rates, along with demands by US sports leagues, which desire to gather a portion of profits as an "stability fee".

International business face the included challenge of an effective existing video gaming industry, with casino operators, state-run lottery games and Native American people that are seeking to defend their turf.

Analysts say UK firms will require to strike collaborations, offering their competence and technology in order to make inroads.

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

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

'It will simply depend'

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

The business has actually been buying the US market because 2011, when it purchased three US companies to develop a presence in Nevada.

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

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

Mr Asher said William Hill has become a home name in Nevada however that's not necessarily the goal everywhere.

"We certainly mean to have a really substantial brand presence in New Jersey," he said. "In other states, it will just depend upon policy and possibly who our local partner is."

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