Most of us know the history on this matter, so I won't get overly detailed here.
My basic understanding is that in early 1991 the Federal Government enacted The Anabolic Steroids Control Act which made anabolic steroids a schedule III controlled substance, and thus anabolic steroids could only be legally distributed and obtained if substantiated by medical reasons. The WWF regularly consulted with a man known as Dr. George Zahorian, and he would regularly approve prescriptions and ship controlled steroids to WWF headquarters and to arenas where WWF events were occurring. The FBI then investigated the WWF and Dr. Zahorian, culminating in a trial in 1994 that almost resulted in sweeping convictions for WWF staff and management that would have surely ended the WWF.
Supposedly, prior to a planned raid of Dr. Zahorian's office, a lawyer for Vince McMahon had been tipped off about the upcoming raid and Vince had Pat Patterson warn Dr. Zahorian to destroy evidence of Vince's corroborating with Dr. Zahorian to facilitate illicit use of steroids. When the raid occurred, Dr. Zahorian was shredding documents before being apprehended.
Now; I believe that Vince was in fact providing steroids to WWF wrestlers. Was it wrong of him to do that? I really don't know. Maybe if they were obsessively juicing it up, they were avoiding other vices like crack or heroin. Do I think any less of a professional wrestler for abusing steroids? No, not really. This isn't serious competition, it's a circus where the clowns hit each other more. So, on a moral level, I don't think any less of Vince McMahon for breaking a law that really didn't hurt anyone.
Looking back, it's not difficult to imagine that a few things could have gone differently. If Dr. Zahorian hadn't been warned to cook the books, the FBI could have found invoices with Vince McMahon's signature and recent corresponding receipts. There's also the fact that several wrestlers testified under oath that Vince McMahon had never encouraged his wrestlers to utilize steroids, save for Kevin Wacholz who was easily painted as a disgruntled and vengeful former employee. I believe that the prosecution was ill-prepared to deal with a trial where their intent was to indicated that a group of professional actors were bad people for committing a victimless crime.
Anywho; I'm imagining what would have happened if Vince McMahon, Linda McMahon, Pat Patterson, and Dr. Zahorian had all gone to prison for eight year stints. I imagine that Hulk Hogan, Brian Blair, Rick Martel, The Ultimate Warrior, Roddy Piper, and Moondog Rex would have all been sent to prison as well.
WCW was at a bit of a turning point during this time. Ted Turner fully trusted Eric Bischoff's judgement, and their biggest objective was to undermine the WWF at all costs. Jim Herd was long-gone, and Ric Flair was rightfully recognized as WCW's top guy. The option to beef up WCW's talent pool with big names is no longer available, as even well known names who might have escaped prosecution for illegal possession of a controlled substance would have carried the taint of being part of the scandal. This scandal would have also involved several WCW mainstays like The Steiner Brothers, Lex Luger, and The Road Warriors.
Ric Flair, Rick Rude, Sting, and Vader would have been the saviors of professional wrestling. WCW would have been given the task of filling the void left by the WWF, and they would have gladly done so.
I feel that as WCW would have worked well with other groups like NJPW and CMLL, and that this would hurt them. I feel that without a substantial catalyst doing things the "wrong" way like the WWF, WCW would struggle to find the motivation to produce a show nearly as provocative as we were given in the mid to late 1990s. With NJPW as a partner, I feel that women's wrestling would have had its revolution in the late 1990s, and that female wrestler would have and maintain their own regions within WCW.
I believe that WCW would have rebranded themselves as a world-wide overseer unto national companies, and that those national companies would have oversight of regional companies. This would be an expanded version of the old territory system, only this time created with a more serious attitude toward legitimacy. WCW would maintain the world's only "World Championship", with the champion traveling freely to the recognized national companies to grant title opportunities to their national champions. The WCW talent pool would be top draws from the national companies, to give WCW a more cultured and worldly appearance. Talent would be grown in each regional company to eventually be brought up to the big time. ECW would be acquired in the early 1990s, and would not become Extreme Championship Wrestling. WCW would keep a tight grip over what type of content is shown under its umbrella. The WWF would have existed in a small way as a New York based regional company, and would have easily been absorbed by WCW.
WCW wouldn't make nearly as much money as the WWF/WWE did, but they would be comfortable knowing that they are in full control of professional wrestling the world over. I imagine that on-screen leadership of WCW would be granted to Eric Bischoff who would also serve as head booker, and that this position would require a yearly behind the scenes vote. During Eric's time on top, he would controversially hire Vince McMahon and Pat Patterson as consultants, but still wouldn't be willing to humor any disgraced wrestlers. With Vince's influence, WCW would have an attitude-era style revolution in mid-2000.
Getting to present day, Vince would have attempted an unsuccessful coup of sorts. Vince would have attempted to recruit several top names to work with him to create a new professional wrestling company, and this would have fallen apart due to the unthinkable reality where someone like Vince McMahon could run a professional wrestling company. Eric would have ensured that Vince never came close to being voted as the person in charge, and Vince would be "fired" on camera as a final nail in his career's coffin.
Professional wrestling would be a redundant mix of large angry people wanting to fight each other, but it would be a more safe and respectful environment for the wrestlers.