The vast majority of illegals were open pre 1960. Although most every state had some, there was huge pockets in some states such as, KY, FL, TX, AR, LA, and MS.
The Kefauver hearings in the early 50's started the begining of the end for the illegals. The illegals did have a license of sorts. It was usually bought and paid for through brides to the local police. In some cases the local police were part owners of illegals.

This part of our hobby is very rich in history. Chips from the illegals are becoming a part of many new collectors, collections.