Everyone understands that with the introduction of the lottery, Arkansas, like most states, has a government-operated monopoly on gambling. But not everyone understands that the government has something approximating a monopoly on the production of alcohol. No, the government does not manufacture or distribute alcohol itself, but it does tightly regulate and heavily tax the industry so much that it essentially has control.
If you don’t believe me, consider how the state prohibits the production of moonshine, even if only for personal consumption. Just this week a Washington County man was arrested for possessing a moonshine still (in addition to possessing pot and illegal firearms). There is an exemption for home brewing, but that beer may not be sold to others and is strictly limited in quantities.
The government chooses and collects money from the limited number of people who can manufacture alcohol, distribute it, and have a restaurant, bar, or store to sell it. For all practical purposes, the government has outsourced its alcohol business to some private vendors.
The only major “sin” that the government does not operate as its own monopoly is prostitution. Maybe Lt. Governor Bill Halter can propose a chain of state-operated brothels to go along with the state-operated lottery, and state-controlled alcohol business. He might want to tax and regulate it so that we could fund scholarships for students to attend universities. We could call it Trix are For (College) Kids.

Seems to work alright in Nevada . . .
If we pay the administrators of Trix for Kids as much as the state lottery administrators, we’ll be able to attract some of the best pimps in the business.
The state could also take advantage of its monopoly on murder. We could build a Colosseum and charge admission to watch prisoners fight to the death. Check out this trailer for The Gladiator (http://www.youtube.com/watch?v=IvTT29cavKo).
I’m not sure they can beat Butters.
As I wrote in an old blog post (http://jaypgreene.com/2008/09/23/the-arkansas-lottery-lock-box/ ), it’s not obvious which is worse: a government monopoly or a government prohibition. I’d lean toward prohibition, but they are both bad.