definitely 2 sides to this coin and hard to tell what the real effects would be
yes, opening up gambling would bring a lot of stuff out from the shadows...if given the choice, most people would choose to deal with legitimate, liscensed bookmakers rather than illegal local bookies. This would definitely give better oversite and regulation and help deal with the price-fixing problems
The other side is that expanding gambling, combined with the anonymity of the internet, would potentially allow a lot more players/coaches to bet on games, particularly college students. Would be very hard to police, say, all 300 or so D-I hoops teams. Right now there is a bottleneck as the number of outlets is small.