Whats the difference? Why is a licence needed for a private performance if profit is intended but not otherwise – surely the effect on the licensing objectives is the same?
The difference is that the profit motive can lead people to take chances or cut corners about things like public safety or the protection of children in order to maximise the profit involved. Licensing forces people to take a step back and think properly about the safety and well being of performers, the audience and the interests of the local community.
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