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

From Tuesday, brand-new guidelines on betting came into impact 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 changes are the first in what could end up being a wave of legalisation after the Supreme Court last month cleared the way for states to allow sports betting.

The market sees a "once in a generation" chance to establish a brand-new market in sports-mad America, said Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.

For UK companies, which are grappling with debt consolidation, increased online competition and harder rules from UK regulators, the timing is especially appropriate.

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But the industry says counting on the US stays a dangerous bet, as UK business deal with complex state-by-state policy and competition from entrenched regional interests.

"It's something that we're really focusing on, however similarly we don't want to overhype it," said James Midmer, representative at Paddy Power Betfair, which just recently acquired the US fantasy sports website FanDuel.

'Require time'

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

Firms are wishing to use more of that activity after last month's choice, which overruled a 1992 federal law that barred states beyond Nevada and a few others from authorising sports betting.

The ruling found the law was an over-reach of federal power. But the court it did not actually legalise sports wagering, leaving that concern to regional legislators.

That is anticipated to cause significant variation in how companies get certified, where sports betting can happen, and which events are open to speculation - with huge implications for the size of the marketplace.

Potential income ranges from $4.2 bn to practically $20bn each year depending upon factors like the number of states transfer 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 an opportunity 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, predicts that 32 states will legalise sports betting in some form by 2023, producing a market with about $6bn in annual earnings.

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

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

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

States have likewise been slow to legalise numerous kinds of online gaming, in spite of a 2011 Justice Department viewpoint that appeared to eliminate challenges.

While sports betting is normally seen in its own category, "it clearly stays to be seen whether it gets the kind of momentum people think it will," stated Keith Miller, law teacher at Drake University and co-author of a book about sports betting guideline.

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

Now a consultant, he states UK firms ought to approach the marketplace thoroughly, picking partners with caution and avoiding mistakes that might cause regulator reaction.

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

'It will be collaborations'

As legalisation starts, sports wagering companies are lobbying to fend off high tax rates, along with requests by US sports leagues, which desire to gather a percentage of profits as an "integrity charge".

International business deal with the added challenge of a powerful existing video gaming market, with casino operators, state-run lottery games and Native American people that are seeking to safeguard their grass.

Analysts say UK companies will require to strike collaborations, providing their knowledge and innovation in order to make inroads.

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

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

'It will simply depend'

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

The business has actually been investing in the US market because 2011, when it acquired 3 US firms to establish an existence in Nevada.

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

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

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

"We definitely plan to have an extremely considerable brand name presence in New Jersey," he said. "In other states, it will simply depend upon regulation and possibly who our regional partner is."

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

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