How I think Chao World actually works

[Chao. Enterprises]

I'm not sure how to title this, but here's how I think certain things are when it comes to Chao in Sonic's world
Chao World - Chao World is actually a chao sanctuary, and you have to pay fees to keep them in the Chao Gardens. The Hero and Dark gardens are exclusive to people who own either allignment and cost even more money. It's a hefty bill.
Chao Kindergarten - It's a place of business, but it's not affiliated with Chao World. You have to pay for your chao to take lessons here. The runner of the kindergarten, as well as most of it's staff are actually chao themselves. I think Chao are able to learn English, which is why the staff can speak fluently.
Black Market - It's an illegal business held in the janitor's closet, by the Kindergarten's janitor himself, along with his companion, a half fish. It's very shady, and few people know about it.
Chao Stadium - Again, not affiliated with Chao World. It frequently holds Chao Racing events, which people actually bet on, like horse races and things like that in real life. You can enter a Chao, but there's standards. They also do Chao Karate, which is controversial and largely frowned upon.

[Mooncow]

I would be pretty sure that the shady Chao who parades as the Chao Doctor and Principle is also a high ranking politician of the Chao World

[Goat]

For all we know, Eggman might run the whole operation given that we know he has a special place in his heart for the chao. The black market itself might be a front for himself which would also explain why you're able to find and buy rare chao anyways. His own self interests might fund medication for the chao as well, given that each garden is more or less a private location that only his technology could make work. As to why hero and dark gardens need to be unlocked, he might have simply left Chao Island open to team hero since he himself can profit off of them. The only anomaly is why he would need to pay rings, perhaps to keep up the charade itself?

[Ivogoji]

Ahh, the truth is far more disturbing than that.

In fact, Eggman is just one member of an entire secret society that maintains and profits from Chao World and related facilities throughout the planet. Chao themselves are in charge if the whole operation- the older, more intelligent Chao like the Black Marketer. They exploit their younger, vulnerable brethren for their own gain. Eggman himself is the most humane stakeholder in the organization, using his influence to guard against the excesses of the other councilmen.

All the while, the cabal's wealth and power grows, bringing them closer to their real goals...