Well, then they essentially become above board legitimate businesses competing on their ability to provide a service in the market. Legalization implies regula

Well, then they essentially become above board legitimate businesses competing on their ability to provide a service in the market. Legalization implies regulation of some sort (e.g. like alcohol). You could also have a government-run monopoly. The point is to remove the billions of dollars in black-market profits which give rise to criminal organizations who cannot depend on the law to resolve their disputes and must therefore "make their own law".