I watched a documentary on Ron Jeremy and he talked about how for the longest time (until 10 years ago or so) selling and distrubiting porn was legal, but making it was not. He said there were several studios that got shut down because paying the actors and actresses was considered prostitution.
The way they got it legalized is pretty interesting though. Their argument was this: Two men fighting violently will usually end both men up in jail. Put gloves on those two men and then you can charge admission and neither man gets in trouble. By comparing it to several things like boxing, they made people realize that making porn is no different and shouldn't be illegal.
Also, I don't know if anybody mentioned this (I didn't see it anywhere) but isn't prostitution legal in Nevada or maybe just Las Vegas? I thought it was and that they tax the hell out of it and it does very well.
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