Why PA and MD Costcos can't sell alcohol

Pennsylvania is classified as an Alcoholic Beverage Control (ABC) state, featuring some of the most stringent alcohol regulations in the United States. The distinction between open and control states dates back to the end of Prohibition in 1933, when the authority to manage alcohol sales was delegated to individual states. Open states permit private businesses to sell alcohol in accordance with state laws, while control states have local governments overseeing the sale and distribution of alcoholic beverages.
Prior to 2017, liquor and wine could only be purchased at state-owned stores in Pennsylvania, and beer was available through select distributors, but only in limited quantities. However, regulations have evolved since then; liquor remains exclusive to state-run stores, but beer and wine can now be sold in grocery stores that have obtained state-issued licenses. It appears that Costco has not yet acquired such a license.
Although Maryland is not classified as a control state, certain counties, like Montgomery County, have opted to regulate alcohol sales by permitting sales only in government-operated stores. Due to legislation enacted in 1978, grocery store chains statewide are generally prohibited from selling alcohol, with the exception of 20 stores that were grandfathered into the law. Costco is not included in this group. Residents of Maryland can purchase beer, wine, and liquor at independent private liquor stores, provided they are outside of the control counties.
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