The illegal cannabis market continues to thrive in the United States despite the hope that legalization would reduce black market sales. Here is some data from the Cannabis Advisory Committee’s report to provide perspective: Illegal sales are three times higher than legal sales: In 2019, legal cannabis sales in California were expected to reach $3.1 billion compared to $8.7 billion in illegal sales. Key Takeaways about the Cannabis Black Market Hurting Legal Sales The idea that legalizing cannabis could end the black market (or at least hurt it) is a good one, but in many states, cannabis programs aren’t set up to effectively do so. In its 2019 draft annual report, the Cannabis Advisory Committee warned California legislators and Governor Gavin Newsom that a combination of high taxes, onerous regulations, and local bans allow the cannabis black market to dominate “as much as 80% of the cannabis market in California.” What does 80% of California’s cannabis market mean? In November, 2019, the Bureau of Cannabis Control sent more than 400 letters to property owners alerting them that their tenants were engaged in the illegal cannabis market.
The illegal cannabis market continues to thrive in the United States despite the hope that legalization would reduce black market sales. In some states, like California, the problem is significantly bigger than others.
In its 2019 draft annual report, the Cannabis Advisory Committee warned California legislators and Governor Gavin Newsom that a combination of high taxes, onerous regulations, and local bans allow the cannabis black market to dominate “as much as 80% of the cannabis market in California.”
What does 80% of California’s cannabis market mean? Here...
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