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

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

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

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

The industry sees a "once in a generation" opportunity to develop a brand-new market in sports-mad America, stated Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.

For UK firms, which are grappling with consolidation, increased online competitors and tougher rules from UK regulators, the timing is especially opportune.

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

"It's something that we're actually focusing on, but similarly we don't want to overhype it," stated James Midmer, spokesperson at Paddy Power Betfair, which recently purchased the US dream sports website FanDuel.

'Require time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming income last year, according to a report by Technavio, external released in January.

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

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

That is expected to result in considerable variation in how firms get accredited, where sports betting can take place, and which occasions are open to speculation - with huge implications for the size of the marketplace.

Potential earnings ranges from $4.2 bn to nearly $20bn each year depending upon aspects like the number of states move 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'", stated 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 wagering in some type by 2023, developing a market with about $6bn in annual revenue.

But bookmakers deal with a far various landscape in America than they carry out in the UK, where betting stores are a regular sight.

US laws minimal gaming mostly to Native American lands and Nevada's Las Vegas strip till reasonably recently.

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

States have likewise been slow to legalise numerous forms of online betting, in spite of a 2011 Justice Department viewpoint that appeared to eliminate barriers.

While sports betting is normally viewed in its own classification, "it plainly stays to be seen whether it gets the sort of momentum individuals believe it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting guideline.

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

Now an expert, he states UK companies ought to approach the market thoroughly, picking partners with caution and avoiding mistakes that might lead to regulator backlash.

"This is a chance for the American sports betting gambler ... I'm uncertain whether it is a chance for company," he says. "It truly is dependent on the result of [state] legislation and how the service operators pursue the chance."

'It will be partnerships'

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

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

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

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

"It will be a win-win for everybody, however 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 realities.

The business has been purchasing the US market since 2011, when it purchased 3 US companies to develop a presence in Nevada.

William Hill now uses about 450 individuals in the US and has revealed collaborations with casinos in Iowa and New Jersey.

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

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

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

"The US is going to be the biggest sports betting wagering market on the planet," he included. "Obviously that's not going to happen on day one."