There's another issue as well. Many people who are engaged in illicit drugs basically turn toward contraband tobacco because it is a far easier buck to make and the penalties are lower than for engaging in illicit drugs.
The equation is quite easy for them. They switched, saying they could make a lot of money by selling contraband tobacco. Even if they're caught, there's nothing that's going to happen to them, or virtually nothing. The fines are just going to be the cost of doing business. They'll pay them because they're making so much money selling these cigarettes.