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

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

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

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

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

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

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But the industry says relying on the US remains a risky bet, as UK business face complicated state-by-state policy and competition from entrenched regional interests.

"It's something that we're truly concentrating on, however equally we do not wish to overhype it," stated James Midmer, spokesperson at Paddy Power Betfair, which recently bought the US dream sports betting site FanDuel.

'Require time'

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

Firms are wanting to use more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states outside of Nevada and a couple of others from authorising sports betting wagering.

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

That is anticipated to result in substantial variation in how companies get certified, where sports betting can occur, and which occasions are open to speculation - with big ramifications for the size of the marketplace.

Potential income varieties from $4.2 bn to nearly $20bn annually depending upon factors like how numerous states move to legalise, Oxford Economics approximated in a 2017 study for the American Gaming Association.

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

Now, he stated: "I think many people ... are taking a look 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 some time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports betting in some form by 2023, producing a market with about $6bn in yearly revenue.

But bookies deal with a far different landscape in America than they carry out in the UK, where wagering stores are a frequent sight.

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

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

States have actually also been slow to legalise lots of types of online betting, despite a 2011 Justice Department viewpoint that appeared to eliminate challenges.

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

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

Now a specialist, he states UK companies must approach the marketplace thoroughly, picking partners with caution and avoiding bad moves that might cause regulator backlash.

"This is a chance for the American sports betting wagerer ... I'm unsure whether it is a chance for service," he says. "It actually depends on the outcome of [state] legislation and how the company operators pursue the chance."

'It will be partnerships'

As legalisation starts, sports betting wagering firms are lobbying to ward off high tax rates, as well as demands by US sports betting leagues, which wish to collect a portion of revenue as an "integrity charge".

International companies deal with the included difficulty of a powerful existing gaming industry, with casino operators, state-run lotteries and Native American tribes that are looking for to protect their turf.

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

They indicate SBTech's recent announcement that it is supplying 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, however it will be collaborations and it will be driven by innovation," Mr Hawkley stated.

'It will just depend'

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

The company has been buying the US market given that 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 revealed collaborations with gambling establishments in Iowa and New Jersey.

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

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

"We certainly intend to have a very considerable brand name existence in New Jersey," he stated. "In other states, it will simply depend upon guideline and potentially 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 day one."