I'm guessing that is exactly right.
Also, they will have more control on the innerworks of the business example: making MPA's and the owners sign a contract. This contract may cover issues like;what the ladies can't do etc. ...like no topless, no touching the clients private parts,the girls can't touch themselves, the government can even say that the girls are not aloud to wear see-through lingerie etc.. If the owners and ladies disregard these rules fines may be issued, or the place may get shut down.
On top of everything, the government makes money on licenses. The MP scene is still fairly new in Guelph, it has only been around for a few years, unlike Kitchener, so they are probably going to follow K-W's footsteps and only allow so many licenses. That way when someone decides to close down or they are forced to close, they can't re-open etc., that license is gone...it's kinda a way of kicking them out of town.