The Evolution of NY State Cannabis

Like many of us, I, too, am untrusting of the media these days. Each platform has its narrative; many times, too much of it isn’t accurate but conjectured. It is that way in every industry. Unfortunately, it has become the nature of the beast, and it will evolve like everything else. But, when you are deep inside an industry talking to different participants, it is easier to see reality.

I read this article last week, and I immediately thought I knew this was going to happen. Everyone in the industry knew it would happen, and more of this will happen. The recap is that many people who have been awarded cannabis licenses are going to fail. NYState is at fault for allowing the York Social Equity Cannabis Investment Fund run by Former City Comptroller William Thompson, sneaker entrepreneur Lavetta Willis and retired basketball star Chris Webber create egregious loans for licensees.

Nobody who took that loan can succeed; the numbers do not add up. Those given those loans believed that NY State thought this was a good idea. The whole thing was a complete debaucle and it is only going to get worse. I am sure more journalists are poking around and they should be.

The worst part is that those who own those licenses are mostly previously incarcerated Black and brown people who were given this golden ticket. Too many will find themselves having to close their shops with debt on the books from the loan, but more heartbreaking loans from family and friends, as well as their own entire savings account.

These dispenaries compete with Gotham but the market is big enough for many to succeed. 2025 will be a tough year for many of these licensees, too many will given licenses and never open at all. We can’t roll back time but I do hope that NY State does the right thing by these licensees who took these loans. The amount of money for the state is nothing but for these families, it is their livelihood.