[invalidname]

That's an over simplification. Imagine that drugs, gambling and prostitution were legalized (with restrictions), the cartels would fork off that business into their "legitimate" businesses. Pay taxes and work through there.

Eventually, these would become two separate businesses as enforcement would focus on the connection between the businesses and levy sanctions. History is full of such stories where bootleggers became respected business owners.

The cartel won't disappear, but it will shrink as its big sources of income would become irrelevant. That would mean law enforcement can be more focused and follow a smaller target. Violence will decrease and everybody wins. Additional taxes from these industry fund more policing of the remainder of the cartels.