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

From Tuesday, brand-new rules on wagering entered effect in Delaware, a small east coast state about two hours from Washington.

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

The modifications are the first in what could become a wave of legalisation after the Supreme Court last month cleared the way 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 financial analyst David Jennings, who heads leisure research study at Davy.

For UK companies, which are grappling with consolidation, increased online competitors and harder guidelines from UK regulators, the timing is especially suitable.

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But the market states counting on the US remains a dangerous bet, as UK companies deal with complex state-by-state guideline and competitors from entrenched regional interests.

"It's something that we're actually concentrating on, but similarly we do not want to overhype it," stated James Midmer, representative at Paddy Power Betfair, which just recently purchased the US dream sports betting site FanDuel.

'Take time'

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

Firms are wishing to tap into more of that activity after last month's choice, which struck down a 1992 federal law that disallowed states beyond Nevada and a few others from authorising sports betting 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 concern to local legislators.

That is anticipated to cause considerable variation in how firms get licensed, where sports betting can take place, and which occasions are open to speculation - with huge implications for the size of the marketplace.

Potential profits varieties from $4.2 bn to practically $20bn each year depending upon aspects like the number of states move to legalise, Oxford Economics approximated in a 2017 study for the American Gaming Association.

"There was a lot of 'this is going to be big'", stated Will Hawkley, London-based head of leisure for experts KPMG.

Now, he said: "I believe the majority of 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 take 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 earnings.

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

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

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

States have actually also been sluggish to legalise lots of kinds of online gambling, regardless of a 2011 Justice Department viewpoint that appeared to eliminate challenges.

While sports betting wagering is generally seen in its own classification, "it plainly stays to be seen whether it gets the type of momentum people 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 primary executive of BetonSports, who was detained in the US in 2006 for running an offshore online sportsbook and served prison time.

Now an expert, he says UK companies must approach the market thoroughly, picking partners with care and avoiding missteps that might cause regulator reaction.

"This is a chance for the American sports betting gambler ... I'm not exactly sure whether it is a chance for service," he says. "It truly is dependent on the result of [state] legislation and how business operators pursue the opportunity."

'It will be collaborations'

As legalisation starts, sports betting wagering companies are lobbying to fend off high tax rates, in addition to requests by US sports leagues, which wish to gather a portion of profits as an "integrity charge".

International business deal with the added difficulty of an effective existing gaming industry, with gambling establishment operators, state-run lottery games and Native American tribes that are seeking to defend their turf.

Analysts say UK firms will require to strike partnerships, using their know-how and technology in order to make inroads.

They point to SBTech's current announcement that it is supplying innovation for Kentucky Derby operator Churchill Downs as an example of the type of deals likely to materialise.

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

'It will simply depend'

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

The company has actually been purchasing the US market because 2011, when it acquired 3 US companies to develop a presence in Nevada.

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

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

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

"We definitely plan to have a very significant brand presence in New Jersey," he stated. "In other states, it will just depend on policy and potentially who our local partner is."

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