The judge based the ruling on the safety issue. The law made the prostitutes vulnerable to violent crimes because it forced them to hide from the police. Judge: "I find that the danger faced by prostitutes greatly outweighs any harm which may be faced by the public." Makes sense. Link.
A higher court will probably have the last word on this, but should it hold, this will be a good test of the free market principle that fewer regulations result in lower prices.
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