You can think of the Bitcoin ATM model as micro-exchanges or automated OTC (over-the-counter) kiosks. The barriers to entry are considerably lower than either and depending on where you want to launch, the regulatory regime could be simpler.
Bitcoin ATMs generate a recurring source of income through a stream of regular customers, while providing the easiest onramp for first-time cryptocurrency buyers. Crypto miners may also consider ATMs as direct way to convert their mined coins to fiat to pay for their operations.
Traditional ATM operators will find a familiar opportunity, but with more upside. An exciting new market that is far from saturation.