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

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

Neighbouring New Jersey could start accepting sports betting bets as early as Friday.

The modifications 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 wagering.

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

For UK companies, which are coming to grips with consolidation, increased online competitors and tougher guidelines from UK regulators, the timing is especially appropriate.

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But the market states depending on the US stays a dangerous bet, as UK companies face complex state-by-state regulation and competition from established regional interests.

"It's something that we're actually focusing on, but equally we do not wish to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently bought the US dream sports site FanDuel.

'Require time'

The US represented about 23% of the world's $244bn (₤ 182bn) in 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 disallowed states beyond Nevada and a few others from authorising sports betting.

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

That is anticipated to lead to substantial variation in how companies get accredited, where sports betting wagering can take place, and which occasions are open to speculation - with big implications for the size of the marketplace.

Potential profits varieties from $4.2 bn to almost $20bn every year depending upon factors like the number of states relocate to legalise, Oxford Economics estimated 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 specialists KPMG.

Now, he said: "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 time'."

'Remains to be seen"

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

But bookmakers face a far different landscape in America than they do in the UK, where betting shops are a regular sight.

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

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

States have also been slow to legalise numerous kinds of online gambling, in spite of a 2011 Justice Department viewpoint that appeared to remove obstacles.

While sports wagering is usually seen in its own classification, "it clearly remains to be seen whether it gets the kind of momentum people think it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting regulation.

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

Now a specialist, he says UK firms should approach the market carefully, selecting partners with care and avoiding missteps that might lead to regulator backlash.

"This is an opportunity for the American sports gambler ... I'm not exactly sure whether it is a chance for service," he says. "It actually depends on the outcome of [state] legislation and how the service operators pursue the chance."

'It will be partnerships'

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

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

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

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

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

'It will just depend'

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

The business has been buying the US market because 2011, when it bought 3 US firms to develop an existence in Nevada.

William Hill now employs 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 actually invested millions together with a regional designer in a New Jersey horse racing track.

Mr Asher stated William Hill has become a family name in Nevada however that's not always the objective everywhere.

"We certainly plan to have an extremely substantial brand name existence in New Jersey," he said. "In other states, it will simply depend on regulation and possibly who our local partner is."

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