The effects of this will be reduced by the realization that these regulations can be changed in the future. No one will make a large capital investment if it could be shut down in a few years.

> No one will make a large capital investment if it could be shut down in a few years.

They will if they think they can bribe government to give them exemptions to the new rules or they think they can cash out and leave someone else holding the bag before that happens.

Most regulations provide a grandfather clause that exempt existing players in the game.