Marijuana retailers in the state of New York raked in more than $429 million in revenue between January and August of this year. Just last month, sales made each week exceeded $20 million for the first time ever. New York made marijuana legal in March 31, 2021, following the approval of the Marijuana Regulation and Taxation Act. However, the state’s first sales were recorded in December 2022.
The Office of Cannabis Management’s deputy director of policy, John Kagia, stated that while some momentum had been lost in 2023, the office had known that with enough effort and time, the market would become operational. A measure that was approved in May, which granted law enforcement in New York the authority to close the premises of any individual found selling cannabis without a permit, also came in clutch.
In an August interview, Governor Kathy Hochul revealed that since the crackdown’s launch, nearly 1350 alleged illegal sellers of cannabis had been apprehended. According to the governor, the shutdown of this illicit market has allowed regulated cannabis sales from licensed retailers to increase.
Kagia added that clamping down on unlicensed retailers and increasing permits had also helped improve regulated sales. Park Strategies MD, Joseph Rossi, noted that this is good news for those who were affected by the illicit market.
With about 200 licensed retailers set to launch their businesses by the end of September, finishing the year with more than $1 billion in regulated cannabis sales is possible. While surpassing the billion-dollar threshold would represent a significant increase in regulated cannabis sales, it is still lower than initial sales projections for the state.
Critics and regulators acknowledge that there is more that needs to be done, especially when it comes to the processing of the many pending license applications. Normally, it takes anywhere between six and nine months after obtaining an initial permit for retailers to open their businesses.
Of the total retail permits issued thus far, about 200 are Conditional Adult Use Retail Dispensary permits, which are reserved for parties disproportionately impacted by the war on drugs and nonprofits. Taylor Randi Lee, spokesperson for the Office of Cannabis Management (OCM), revealed recently that an estimated 4,000 permit applications are yet to be processed. Acting OCM executive director Felicia Reid believes the backlog may take until 2025 to be cleared.
Currently, the state has 189 licensed retailers, which is lower than the number of licensed stores in Missouri. The midwestern state, which has one-third of New York’s population, legalized recreational marijuana in 2022.
Marijuana companies, such as Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), along with the entire cannabis industry, will be relieved that the New York marijuana industry, which has the potential to be one of the leading regulated markets in the country, is finally finding its footing after a stuttering start.
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