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

From Tuesday, new guidelines on wagering came into result 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 might become a wave of legalisation after the Supreme Court last month cleared the method for states to permit sports betting.

The industry sees a "as soon as in a generation" opportunity to establish a brand-new market in sports-mad America, said Dublin-based monetary analyst David Jennings, who heads leisure research at Davy.

For UK firms, which are facing combination, increased online competitors and tougher rules from UK regulators, the timing is particularly suitable.

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But the industry says counting on the US stays a risky bet, as UK business face complicated state-by-state regulation and competition from established regional interests.

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

'Take 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 hoping to take advantage of 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 wagering.

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

That is anticipated to cause considerable variation in how firms get certified, where sports betting can occur, and which events are open to speculation - with huge ramifications for the size of the market.

Potential revenue varieties from $4.2 bn to almost $20bn annually depending on aspects like the number of states transfer to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

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

Now, he said: "I believe 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, predicts that 32 states will legalise sports betting in some kind by 2023, creating a market with about $6bn in yearly revenue.

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

US laws restricted gambling largely to Native American lands and Nevada's Las Vegas strip up until reasonably just recently.

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

States have likewise been slow to legalise lots of types of online gaming, regardless of a 2011 Justice Department viewpoint that appeared to remove challenges.

While sports betting wagering is typically viewed in its own classification, "it plainly remains to be seen whether it gets the sort of momentum people think it will," stated Keith Miller, law teacher at Drake University and co-author of a book about sports betting policy.

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

Now an expert, he states UK firms must approach the market carefully, selecting partners with care and preventing bad moves that could result in regulator reaction.

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

'It will be collaborations'

As legalisation begins, sports wagering companies are lobbying to ward off high tax rates, along with demands by US sports betting leagues, which desire to gather a percentage of profits as an "stability fee".

International business face the added difficulty of a powerful existing gaming industry, with casino operators, state-run lotteries and Native American tribes that are seeking to safeguard their turf.

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

They point to SBTech's recent statement that it is providing technology for Kentucky Derby operator Churchill Downs as an example of the kind of offers 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 simply depend'

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

The business has actually been buying the US market because 2011, when it bought three US companies to establish an existence in Nevada.

William Hill now employs 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 alongside a regional designer in a New Jersey horse racing track.

Mr Asher said William Hill has ended up being a home name in Nevada however that's not necessarily the objective everywhere.

"We definitely mean to have an extremely significant brand existence in New Jersey," he stated. "In other states, it will just depend on policy and possibly who our regional partner is."

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