So the question is "Is it Fair"????
That is an interesting question since "Fair" is a highly subjective term in the first place. From a straight competitive standpoint, there is nothing more Unfair than to give a lesser player an artificial advantage to compete with a higher skilled player. What is the motivation to get any better, or to achieve any level of expertise if you can just be handed points because you stink. It is just like the ridiculous notion that in kids sports leagues there is the 'we don't keep score because all the kids are winners for just trying' attitude...John Wayne is turning over in his grave...
Having said that, the handicap system gives the appearance that the bowling community as a whole is more interested in creating an environment where the average and less than average joe can be enticed to enter a league. It keeps the general interest up and keeps the coffers of the league full.
So overall, considering that the handicap system gives the impression that there is a way for new and under-skilled bowlers to compete in league play, I guess some would consider is 'fair'. As a final thought, if somebody out there is really that good and the concept of playing in a league where there is a handicap is causing them grief, take your bad self and get your PBA card and go for it!
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