Alcoholic Beverage Control State - Modern Stores

Modern Stores

There are currently 18 monopoly states in the U.S. The term "control state" is popular but ambiguous, since all states control and regulate the sale of alcohol to some degree. Only 18 states are monopoly states, and the term "control state" frequently refers to these 18 states in particular. The extent to which this monopoly extends differs from state to state. Out of the 18 states that regulate alcohol wholesaling, only eight (Alabama, Idaho, New Hampshire, Oregon, North Carolina, Pennsylvania, Virginia, and Utah) run liquor retailing establishments. The others either permit ABC licensed private stores to sell liquor or contract the management and operations of the store to private firms, usually for a commission. Liquor sales became privatized in Washington state on 1 June 2012.

In all of these control states, some form of low-alcoholic beverages are available in private retail outlets for off-premise consumption. Most of these states require private retail outlets to have a license issued by the ABC board (usually called an ABC off License). Similar licensure procedures apply for acquiring an on-premise license.

Use of the term "alcoholic beverage control" by a state does not make it a "control" (or monopoly) state. For example, Arkansas uses "Alcoholic Beverage Control" or "ABC" to refer to its state agencies that regulate alcohol sales; yet all alcohol sales (wholesale and retail) in those communities that allow it are by private firms. Though Arkansas (like most states) generally limits the number of retail outlets in an area, outlets within those limits are free to compete. Therefore, Arkansas is a local option state, but it is not a "control" (or monopoly) state.

Many "control" (or monopoly) states are members of the National Alcohol Beverage Control Association.