[woodguy]

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The existing sites would be dwarfed by the legitimate and known B&M sites, almost instantly.

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That is incorrect.

Just because you are a giant player in one segment does not automatically mean you can also dominate another segment.

Many businesses that are very successfull in one part of the market often struggle in others (whether the market being segmented by cost, geography, etc. isn't really important)

This is especially true in businesses with a low barrier to entry.

The land based casino's would have instant credibility and traffic, but not enough to come close to the online giants immediately. That would take time and lots of $$$.

Regards,
Woodguy