How? Society should raise standards, not lower them.
Barman - Can legal sportsbetting in LV compete with Pinny and other "illegal" sportsbooks? Of course not. Don't think that street dealers wouldn't be able to compete, because they will.
1) Driving drug production and commercial distribution off the street and into a regulated setting is certainly an improved standard.
2) Legal sports betting in LV receives fair competition from offshore bookmakers because they (the offshores) are defacto legal since tens of millions of Americans are conducting business with them while encountering no risk of criminal arrest or prosecution.
3) There are no drugs within the currently legal realm that are competitively dealt by street dealers in the year 2008.
Easily 99.9% (literal number, not euphemistic) of production and commercial sales for the drugs alcohol and tobacco within North America are conducted by legal, regulated operators.
And despite a modicum of a "street" market for Rx pharmaceuticals (notably opiods and tranquilizers), 97% or more of those drugs are also produced and commercially dealt by legal, regulated operators.
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The primary reason that upwards of 3% of Rx opiod and tranquilizer sales are conducted by illicit and unregulated dealers (ranging from family members to neighbors and coworkers usually) is that Rx pharms in the USA are sold in two distinct pricing tiers.
Consumers with medical insurance which includes RxPharm copayments pay between 50-90% less than do consumers who do not have such insurance coverage. It is that secondary tier of consumers who can be viably serviced by illicit sellers who themselves are in the first tier (low prices) and simply pass some or all of their legally obtained pharms to non-insured consumers at a price that falls somewhere between the "insurance copay" price and the no-insurance "full price".