Yes it will. A draw system wont work. IL has a lottery system but you are guaranteed a tag because the high price of tags has reduced the non resident pool. Years ago when they charged $200 for a tag the lottery worked because you had more Non resident hunters than tags available. When the price of non residents permits went up the non resident applications went way down. You are now guaranteed a tag in the lottery system because of the price of a non resident tag.
Increase price to $400-500 will increase revenue for IN DNR and provide mpre opportunities for resident hunters. What you suggest will not help IN DNR or the resident hunters.