David,
Profit really has nothing to do with whether a an activity is a business or a hobby. It is but one "little" factor in arriving at the determination.

I once did an audit on a casino that was reported as a schedule "C" on the individuals 1040 tax return. The casino had a loss every year from when it was purchased(10 years). I wanted to set it up as a "hobby" loss. My boss asked me if I was crazy . You see David everything is relative.

Best, Jim