I understand that there are downsides, but at the same time they will be able to provide sportsbetting, that is the biggest upside here and that should matter the most. I think the downside of "being blamed" is not really that much of a big deal, sure reputation matters a lot but when the provider cancels something all you have to do is "our provider cancelled this" and nothing more, if people still keep complaining just redirect the blame to provider and you are fine, don't care if they keep doing it because there is literally nothing you can do.
You do not "have to" give better odds, it would be awesome if you can but it doesn't matter because if you do not want to, you will still get "some" people, maybe not as much as you can with good odds, but still some people. These problems are all "headache" level but not bankruptcy level and that is fine they are not that big of a deal.
It is not always that much of an upside for everyone. I do not think that windice is making THAT much money, sure they are doing fine but that doesn't mean they are doing awesome. It means that they will have to spend so much money to get it developed, deal with providers and make that type of expenses, and then they will have to do spend a lot of money on marketing as well.
Basically we are talking about something that will be at least 100k+ dollars if you want to do it properly, I can start a sportsbook for 100 dollars as well, no marketing no nothing, just get some domain and some servers and then get ready mate website connected to a provider without even a graphic change and just put it on some free places, like create a topic here, or spam it with a different account to every tweet in the sports world, which will get you banned eventually but keep doing it with another new account and keep doing it forever, here you have a sportsbook!
But of course, windice is not that bad, so they will have to spend a lot of money and they may not want to do it half-ass, or do not have the money for doing it properly.