The "not openly" is key, though. The OP's point was that suppressing the funding of organized crime was the "net benefit to society". The activities you mention

The "not openly" is key, though. The OP's point was that suppressing the funding of organized crime was the "net benefit to society". The activities you mention, because they are done in secret, do not provide an outlet to reduce organized crime by establishing legal marketplaces. In fact, you could argue that by engaging in smuggling, arms trading, etc, that the government is increasing organized crime... every time the US sells, some criminal is buying.