I am certain organized crime has noted the potential profits of supplying consumers with a LEGAL product at lower prices and are responding just like they did during Prohibition. States are foolish to think that raising the price of cigarettes through confiscatory taxation will increase revenue. In response to higher prices the market will always buy less of the product or seek lower cost substitutes. How much will states now have to spend to collect their cigarette taxes?
I can not recall the exact amount of cigarettes people are allowed to cross state borders with but the amount is very high. High enough so that people involved will make a very tidy profit.
Not too long ago I understand a 19 year old kid from NJ was busted with well over the amount legal for crossing borders. He had a very profitable operation going but managed to get pulled over by the police for a busted tail light.