(Reply to nmca below, not sure why this shows above). If you make something legal you give them an incentive to obey rules. Yes they're very bad people, but it will attract better people as well. Once they become legal businessmen they will have something to lose.
It will take time yes. But it will happen. Policy should still be very tough on actors using violence, for example those private cartel armies should not be tolerated in the legal model.
But as the price drops due to legalisation they will have no way to pay for all those things anymore.
And yes the US prohibition is a great example as others have mentioned. The alcohol trade went mob-free pretty quickly.