Item — HN Reader

As I read it, there's a point you made in the final paragraph that is kind of missed in the first paragraph.

> the state of New York added teeth to the existing law

> It basically invalidates Airbnb's business model

The rentals that AirBnB was listing that are illegal now were illegal before. The business model was predicated on that the fines were less than the cost of doing business illegally that AirBnB facilitated.

As I understand it, it shifted the scales to making fines more expensive, but that AirBnB in NYC was not necessarily a valid business model before the adding of teeth.

The business model priced in the risk of fines and the amount under the old regime; it was profitable. Now all the city has to do is scrape the frontend (or API, if there is one) and tally up the fines.

Am I missing something here?

The distinction I was trying to make was "facilitating illegal activities and snubbing those charged with enforcement is not a viable business model."

The risk / reward of fines isn't AirBnB's model, but rather the calculation of the people and landlords offering rentals and their business model.