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

From Tuesday, brand-new rules on wagering entered into result in Delaware, a small east coast state about 2 hours from Washington.

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

The changes are the first in what might become a wave of legalisation after the Supreme Court last month cleared the way for states to enable sports betting.

The industry sees a "as soon as in a generation" chance to develop a brand-new market in sports-mad America, stated Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.

For UK firms, which are coming to grips with combination, increased online competition and harder rules from UK regulators, the timing is particularly suitable.

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But the industry states counting on the US stays a dangerous bet, as UK companies deal with complex state-by-state guideline and competition from established regional interests.

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

'Require 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 released in January.

Firms are intending to use 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 wagering.

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

That is anticipated to result in considerable variation in how companies get accredited, where sports betting can occur, and which events are open to speculation - with big ramifications for the size of the market.

Potential profits varieties from $4.2 bn to almost $20bn every year depending on factors like how many states transfer to legalise, Oxford Economics estimated in a 2017 research study for the American Gaming Association.

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

Now, he said: "I believe many people ... are taking a look 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 wagering in some type by 2023, developing a market with about $6bn in yearly revenue.

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

US laws minimal betting mostly to Native American lands and Nevada's Las Vegas strip up until relatively recently.

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

States have actually likewise been sluggish to legalise many forms of online betting, despite a 2011 Justice Department opinion that appeared to get rid of barriers.

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

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

Now an expert, he says UK firms should approach the marketplace carefully, picking partners with caution and preventing errors that might cause regulator backlash.

"This is an opportunity for the American sports wagerer ... I'm uncertain whether it is a chance for organization," he states. "It actually depends on the outcome of [state] legislation and how business operators pursue the chance."

'It will be partnerships'

As legalisation begins, sports wagering companies are lobbying to ward off high tax rates, along with demands by US sports betting leagues, which want to collect a percentage of profits as an "integrity charge".

International companies deal with the included obstacle of a powerful existing gaming market, with gambling establishment operators, state-run lottos and Native American tribes that are seeking to defend their turf.

Analysts state UK companies will need to strike collaborations, providing their proficiency and innovation in order to make inroads.

They indicate SBTech's current announcement that it is offering technology for Kentucky Derby operator Churchill Downs as an example of the kind 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 technology," Mr Hawkley said.

'It will simply depend'

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

The business has been purchasing the US market because 2011, when it acquired 3 US companies to develop an existence in Nevada.

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

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

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

"We definitely mean to have an extremely considerable brand presence in New Jersey," he said. "In other states, it will just depend on regulation and potentially who our local partner is."

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