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

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

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

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

Why the betting market faces an uncertain future

How does unlawful sports wagering work and what are the fears?

But the industry says relying on the US stays a dangerous bet, as UK business deal with complex state-by-state regulation and competitors from established regional interests.

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

'Take time'

The US represented about 23% of the world's $244bn (₤ 182bn) in video gaming income 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 overruled a 1992 federal law that disallowed states beyond Nevada and a couple of others from authorising sports wagering.

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

That is anticipated to result in substantial variation in how firms get certified, where sports wagering can happen, and which events are open to speculation - with huge implications for the size of the marketplace.

Potential earnings varieties from $4.2 bn to practically $20bn every year depending on factors like the number of states transfer to legalise, Oxford Economics estimated 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 specialists KPMG.

Now, he stated: "I think many people ... are looking at this as, 'it's an opportunity 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, predicts that 32 states will legalise sports wagering in some kind by 2023, producing a market with about $6bn in yearly earnings.

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

US laws restricted betting largely to Native American lands and Nevada's Las Vegas strip until fairly recently.

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

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

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

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

Now a consultant, he says UK firms must approach the market carefully, choosing partners with care and preventing bad moves that could lead to regulator reaction.

"This is an opportunity for the American sports bettor ... I'm not exactly sure whether it is a chance for service," he says. "It really is dependent on the result of [state] legislation and how business operators pursue the opportunity."

'It will be partnerships'

As legalisation begins, sports betting companies are lobbying to fend off high tax rates, as well as requests by US sports leagues, which want to collect a portion of income as an "stability charge".

International companies deal with the added obstacle of an effective existing video gaming market, with gambling establishment operators, state-run lotteries and Native American people that are seeking to safeguard their turf.

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

They indicate SBTech's current announcement that it is providing innovation for Kentucky Derby operator Churchill Downs as an example of the kind of deals likely to materialise.

"It will be a win-win for everyone, however it will be collaborations 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 realities.

The company has actually been purchasing the US market because 2011, when it acquired three US firms to establish a presence in Nevada.

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

It works as threat supervisor for the Delaware Lottery and has invested millions together with a regional developer in a New Jersey horse racing track.

Mr Asher said William Hill has actually become a home name in Nevada however that's not always the objective all over.

"We definitely plan to have an extremely significant brand presence in New Jersey," he stated. "In other states, it will simply depend upon policy and possibly who our local partner is."

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