Fair warning, I have no idea what black market cost is here in Aus or anywhere for that matter.
If the USA is anything to go by, their logic was that legalising retail sales would reduce black market sales. There are low-cost producers over there who believe they can sell at or below black market prices. At the moment this is state-by-state as it still hasn't been legalised at a federal level.
I think truly disrupting black market is probably a combination of legalising retail and enforcement of licenses e.g. enforcement action is that black market operators are growing without being licensed and also tax avoidance. In order to pay for enforcement you need tax dollars.
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