The same could be said about allowing poor people to seek treatment from unlicensed medical practitioners "If we don't give them our substandard medical care, they'll get it from underground providers that will be even worse".
Or let them be served by an unregulated transportation providers "Well yeah, our buses aren't safe, some of our drivers have suspended licenses, but if they don't ride with us, they'll ride with someone worse".
Just because there are worse alternatives is no reason for the government to sanction exploitative businesses.