If they can't compete with the legal option, or, if the legal option has too many requirements, there will be black market. This apply to any business.
This^ apart from your accidental misspelling: "If they can't compete with the legal option..."
Competing with the legal option is why black markets exist. Not being able to compete ensures their eventual demise.
In addition I am curious on your opinion and that of others on if a line should be draw and what characteristics that line is to be drawn on.