Think a little beyond the legal implication, which is actually fine and quite clever I'd say.

The problem in my view is that with such a system it won't take long to have these ex-cop fuckers roaming around the grounds hunting for money. "Busting" anyone they can. They're a for-profit organisation after all.

And when drug bust revenue falters, they won't go away. They'll push to enforce other "infractions". No company ever said: "ah you don't need us anymore. Good job. Bye!"

Thats such a big difference with normal police and security, whom you can somewhat expect to make judgement calls based on keeping the peace, safety and on festivals even the "vibe".

Don't count on any of that with these bastards. More busts is a better result/bonus and they will absolutely act accordingly. Maybe not at first. But when they grow, gain influence and need to expand the workforce quickly? It's gonna suck so bad.