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

From Tuesday, new rules on betting came into effect in Delaware, a tiny east coast state about two hours from Washington.

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

The changes are the first in what might end up being a wave of legalisation after the Supreme Court last month cleared the method for states to permit sports betting wagering.

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

For UK companies, which are coming to grips with debt consolidation, increased online competition and harder rules from UK regulators, the timing is particularly opportune.

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But the market states relying on the US remains a risky bet, as UK business face complex state-by-state regulation and competitors from entrenched local interests.

"It's something that we're really concentrating on, however equally we don't wish to overhype it," said James Midmer, spokesman at Paddy Power Betfair, which recently acquired the US fantasy sports website FanDuel.

'Require time'

The US represented 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 wanting to take advantage of more of that activity after last month's choice, which struck down a 1992 federal law that disallowed states beyond Nevada and a few others from authorising sports betting wagering.

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

That is expected to lead to significant variation in how firms get certified, where sports betting can occur, and which events are open to speculation - with big implications for the size of the marketplace.

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

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

Now, he stated: "I think the majority of people ... are taking a look at this as, 'it's a chance however it's not going to be $20bn and it's going to be state by state and it's going to require time'."

'Remains to be seen"

Chris Grove, handling 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 deal with a far different landscape in America than they perform in the UK, where wagering shops are a frequent sight.

US laws restricted betting mainly to Native American lands and Nevada's Las Vegas strip until reasonably just recently.

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

States have likewise been slow to legalise many forms of online betting, regardless of a 2011 Justice Department viewpoint that appeared to get rid of challenges.

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

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

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

'It will be partnerships'

As legalisation begins, sports wagering firms are lobbying to fend off high tax rates, in addition to requests by US sports leagues, which desire to gather a portion of revenue as an "stability charge".

International companies face the included challenge of an effective existing video gaming market, with gambling establishment operators, state-run lottery games and Native American people that are seeking to defend their turf.

Analysts say UK firms will require to strike partnerships, providing their competence and technology in order to make inroads.

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

"It will be a win-win for everybody, but it will be collaborations and it will be driven by innovation," Mr Hawkley said.

'It will simply depend'

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

The business has actually been buying the US market considering that 2011, when it purchased three US companies to develop an existence in Nevada.

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

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

Mr Asher said William Hill has become a family name in Nevada but that's not necessarily the goal all over.

"We certainly intend to have a very significant brand existence in New Jersey," he stated. "In other states, it will just depend on regulation and potentially who our local partner is."

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