market fundamentalists would argue the size of the state doesn't matter; the leak in the dam would spur all sorts of competition and effective resource allocation that would eventually (perhaps more slowly) topple the system.
so it made it happen more quickly perhaps, but seems unlikely the outcome would be different if you're a believer in so called "markets".
It would have to at least have enough universities that it can plausibly form a league. Wyoming wouldn't cut it. The relatively-populated states of Pennsylvania and New York currently only have three serious football programs each. California has seven (being charitable), and with centralized UC leadership could quickly create more. Texas or Florida are the only other plausible options.
NBA has one and done rule currently which means talented high schoolers are waiting 1 year, typically playing in college or abroad, before entering the draft.
why not make some money alongside your 1 glide year by playing in the wyoming league? you get to stay in the US, boosting your future earnings, have some fun in college, but also earning some cash off of jersey sales and maybe lock in some sponsorship deals with apparel/shoe companies earlier than your competitors.
once one successful person does it, it's easy to see how it morphs into a market for eager one and done players.
An argument against that is you'll make less endorsement money the year after, because nobody's going to watch Cheyenne U. stomping all over Windswept Agricultural Institute.
so it made it happen more quickly perhaps, but seems unlikely the outcome would be different if you're a believer in so called "markets".