Well, I don't have a problem with it for a couple of reasons. First off, as far as them keeping a "fee" that is non-refundable, makes since to me since they gotta pay the people doing all the processing of all the tags.
And secondly, it reduces a lot of paper work, or computer work, by having us pay for the tag to start with instead of having us apply then having them contact us that we were successful in the drawing and then having us send money. If you don't pay first, that creats more work for them because they would have to contact everyone to get them to pay.
Besides, don't you think that the interest that they make on the money goes to good use?