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

From Tuesday, brand-new guidelines on wagering entered result 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 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.

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

For UK companies, which are grappling with combination, increased online competition and harder guidelines from UK regulators, the timing is particularly appropriate.

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But the industry says counting on the US remains a dangerous bet, as UK business face complex state-by-state regulation and competitors from entrenched local interests.

"It's something that we're truly concentrating on, however similarly we do not want to overhype it," said James Midmer, spokesperson at Paddy Power Betfair, which just recently bought the US dream sports website FanDuel.

'Take time'

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

Firms are hoping to tap into more of that activity after last month's choice, which overruled a 1992 federal law that barred states beyond 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 in fact legalise sports wagering, leaving that concern to regional lawmakers.

That is expected to result in significant variation in how companies get licensed, where sports betting can occur, and which occasions are open to speculation - with big implications for the size of the market.

Potential income ranges from $4.2 bn to almost $20bn annually depending upon aspects like the number of states relocate 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'", stated Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he said: "I believe the majority of 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 some time'."

'Remains to be seen"

Chris Grove, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports wagering in some form by 2023, developing a market with about $6bn in yearly profits.

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

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

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

States have also been sluggish to legalise many forms of online gambling, in spite of a 2011 Justice Department opinion that appeared to get rid of challenges.

While sports betting is usually viewed 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 wagering guideline.

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 a specialist, he states UK companies should approach the marketplace thoroughly, picking partners with care and avoiding errors that might lead to regulator reaction.

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

'It will be collaborations'

As legalisation begins, sports betting companies are lobbying to ward off high tax rates, in addition to requests by US sports leagues, which desire to collect a percentage of revenue as an "integrity cost".

International business deal with the added challenge of an effective existing gaming market, with casino operators, state-run lotteries and Native American people that are looking for to protect their turf.

Analysts say UK firms will need to strike partnerships, providing their expertise and innovation in order to make inroads.

They point to SBTech's recent announcement 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 simply depend'

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

The company has been investing in the US market because 2011, when it bought three US companies to establish a presence in Nevada.

William Hill now utilizes 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 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 goal all over.

"We certainly plan to have a really substantial brand existence in New Jersey," he said. "In other states, it will simply depend upon guideline and potentially 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 occur on the first day."