The difference between the circuit and the IFPA proposal comes down to two things for me:
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The location of the SCS is not determined before fees are paid. If, for example, I lived in San Francisco, and payed my entry fees, and watched myself get into the top 16, and then suddenly it was announced that the state championship was in San Diego, I’d be upset. There’s no process to say where an SCS should be held, it’s up to you, basically, to bless a location and TD a few months out. The circuit finals are at a set location and date when the circuit is announced.
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The financial risk to the TDs that do voulenteer to run the SCS, and accept a large check from the IFPA for prize money may be making a big mistake tax-wise and legally. The responses to TDs in Wisconsin with concerns of accepting and distributing money were hand-waved away with “you’re doing it already”. With the PAPA circuit, they handle all the distribution of prize money.
If you’re going to go this route, maybe do some legwork and find out what the laws concerning accepting / distributing money for pinball tournaments are in each state.