I think it pretty much is a state enforced monoploy for the benefit of a few. I noticed one of the posters stated that the legislature changed the law so that the eel licenses would only be issued to those who already had them the previous year. Previously it was a lottery. I can sort of see something like this in the lobster industry where there is a big investment in a boat, but all this costs is a couple of nets. Smells of corruption to me.
That’s crony capitalism.
Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of dirigisme.
http://en.wikipedia.org/wiki/Crony_capitalism