More in Cannaland

There appears to be a shift in the wind, as towns that voted against dispensaries are seeing jobs and tax dollars go next door, and begin to change their minds to allow cannabis to enter Main Street. There is still zero tracking of the plant from farm to dispensary. It will be eye-opening, but the OCM doesn’t appear to be able to get this done.

On the other hand, the OCM did release the rules to clarify the event licenses. Essentially, it reads like a pharmaceutical advertisement. If you do this, bad shit can happen but we want you to be aware of this. It appears that you can’t do anything but educate a group of people and sell zero product or perhaps I am missing something? Licensed players are behaving, why is the OCM ramping up enforcement? That certainly impedes growth in an industry that can produce massive taxes for the state.

Data says that 80-95% of cannabis in NYC is sold illegally. This includes stores, delivery, and any other unlicensed activities. In 2025, NYC could do roughly $1-2B in legal revenue, and NYState could do $2-4B. Of course, events that sell products would create more revenue, but these are the numbers now.

Suppose 80% (I am being nice) of the cannabis business is illegal. In that case, there is $8B of revenue being left on the table that pays NYC $1B in tax dollars. Considering the next mayor will inherit a $4B budget gap, this represents a significant opportunity to close a substantial gap.

We should all be asking ourselves, how did this happen? The issue isn’t that the OCM rolled out licenses too slowly; instead, the OCM players decided to put the power in their hands to shut down illegal shops and operations throughout the city. That shouldn’t be their job.

What are the steps to achieve strong leadership from the Governor’s and Mayor’s offices? In Germany, 90% of plant lovers purchase their products legally. They removed the illegal trade, although it is unclear how. Jail is not the answer; massive fines are, and constant oversight. By doing very little, the cannabis industry remains rogue, and the legal players continue to barely hold on.