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

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

Neighbouring New Jersey could begin accepting sports betting bets as early as Friday.

The modifications 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 enable sports betting.

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

For UK firms, which are facing 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 remains a risky bet, as UK business deal with complex state-by-state regulation and competitors from entrenched local interests.

"It's something that we're really focusing on, but equally we do not wish to overhype it," said James Midmer, spokesperson at Paddy Power Betfair, which recently acquired the US dream sports betting website FanDuel.

'Take time'

The US accounted for about 23% of the world's $244bn (₤ 182bn) in video gaming earnings in 2015, according to a report by Technavio, external released in January.

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

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

That is expected to result in substantial variation in how firms get certified, where sports betting can take place, and which events are open to speculation - with big ramifications for the size of the marketplace.

Potential profits varieties from $4.2 bn to practically $20bn yearly depending upon elements 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 experts KPMG.

Now, he said: "I think many 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 take some time'."

'Remains to be seen"

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

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

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

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

States have likewise been slow to legalise numerous types of online gaming, despite a 2011 Justice Department opinion that appeared to remove barriers.

While sports betting is usually seen in its own classification, "it clearly stays to be seen whether it gets the type of momentum individuals believe it will," said Keith Miller, law teacher at Drake University and co-author of a book about sports betting guideline.

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

Now an expert, he says UK firms must approach the marketplace carefully, picking partners with caution and preventing errors that might cause regulator reaction.

"This is a chance for the American sports wagerer ... 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 chance."

'It will be collaborations'

As legalisation begins, sports betting firms are lobbying to fend off high tax rates, in addition to requests by US sports leagues, which wish to gather a portion of earnings as an "stability cost".

International business deal with the included obstacle of an effective existing gaming industry, with gambling establishment operators, state-run lotteries and Native American tribes that are seeking to safeguard their turf.

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

They indicate SBTech's recent statement that it is offering 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 collaborations and it will be driven by innovation," Mr Hawkley stated.

'It will simply depend'

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

The company has been investing in the US market since 2011, when it purchased 3 US firms to develop an existence in Nevada.

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

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

Mr Asher stated William Hill has actually ended up being a household name in Nevada but that's not always the goal everywhere.

"We definitely plan to have an extremely substantial brand presence in New Jersey," he said. "In other states, it will just depend upon guideline and potentially 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 happen on the first day."