Posted: 10/27/2012 9:21:31 AM
I can understand that position. I think there is a place for both types of operations. There will always be lots of people who enjoy the actual excitement of watching the game socially. For alot of people, it's as much about this social interaction as it is gambling. And for the casino, having people around is always a good thing.
I also don't believe that all casinos would want to hand over their bookmaking operations to an outside company. It's not like it loses money. In fact as more books go to the "market" model of setting numbers, I would think that margins could actually increase in this area as it would necessarily need less overhead to operate. The books would just copy the market number when it moves. They will also have selectively higher limits (for some people) which would increase hold.
This leads me to what I believe is the bigger effect of Cantor and William Hill. They won't run EVERY sportsbook, but THEY WILL have the effect of greatly reducing the variation in numbers available. I don't think there is any way of getting away from that.
Once the number is not in question anymore, then books will compete on various things like limits, service, comps, etc. and bettors will pick and choose based on the experience they want.