I think the smaller operations will have better payout rates. They may also beat out the big guys on customer service. Not that service is wonderful now… but it doesn’t have to be. If it had to be, then I think it would be. Perhaps places like MGM would purchase a stake in the smaller operations and slap their stamp on them.
I almost think we’d have to see it happen to know how things would turn out. When the airlines were deregulated, nobody really predicted the hub and spoke system that developed into a rather standard set up.
If the US were to license the big guys, I think the problem will be that politicians will be paid to put even more barriers in place to stifle foreign competition. Governments have used tarriffs and taxes for that reason for ages, and I bet it would continue. They would probably also use plenty of fake reasons like money laundering or terrorism to justify restricting transactions outside their own country, WTO or not.
I’m also interersted in hearing answers to the questions you asked.