Don, Cartamundi, not Paulson, are their other US competition (Jarden acquired Gemaco). Paulson is based out of Mexico I believe.
I admit, the USPCC business model is all kinds of wrong. It's very short-sighted and in no way long-term. They partnered with T11, which means that every last designer and card company will switch over to a competitor that can actually rival USPCC quality and market their brand name properly.
Unfortunately, here is the reality of things:
To start up a card production company would cost hundreds of thousands of investment money. Now, anyone business savvy will only have to put in 5-10% of that in their own money, and will acquire the rest from investors. The next problem is with printing. There are two routes, hire people who know the industry but want to expand it and pay their salaries, or do it yourself. Odds are you can't be a business executive and a card guru at the same time, so you'll hire people at competitive pay with the USPCC. Next comes developing your product line. You will be testing samples and getting the perfect finish and stock combinations possible. Of course, to be competitive with the USPCC, you will want to give people options.
Next you'll have to spend thousands of dollars sending samples to everyone for free. Not just people that ask, but to every last magician in the world. After that comes getting in a big name to print with you, like Ellusionist. Once they're on board, 100% of the little guys will be okay with switching because they will no longer be reliant on USPCC branding.
Then, of course, you will want to also contact casinos for a steady income.
And when you are successful, USPCC or Jarden will just buy you out like they have with pretty much every other company in existence. Recently, Gemaco, Fournier and Hoyle were all acquired.