It's a milestone for stoners.
Marijuana sales in New York state are on track to reach the $1 billion mark since the legal market launched two years ago, state officials told the Post.
“These numbers clearly demonstrate that New York is back for business. There is strong momentum behind the market right now,” said John Kagia, policy director for the state’s Office of Cannabis Control. Ta.
Pot sales reached $863.9 million as of last week and could top $1 billion by the end of December, regulators said. Sales in the state exceeded $500 million in August.
The market has soared in recent months after a difficult development marred by litigation, a large illegal market, and a huge backlog in awarding retail licenses issued by OCM, which is often overwhelmed with staff shortages.
The confusion and hiccups have delayed the state's timeline for developing a new legal market for marijuana.
Gov. Cathy Hochul ordered a management overhaul and hired 64 new employees after a scathing report she commissioned in May openly criticized the way the agency operates.
OCM currently employs 213 full-time employees, according to OCM President Taylor Randy Lee.
There are currently 245 licensed marijuana retail stores, up from 41 at the end of 2023.
Retail cannabis sales generate a total of $22 million in tax revenue for local governments, including $7.9 million to New York City, according to State Comptroller Tom DiNapoli's office.
More than $16.6 million in tax revenue from pot businesses also flowed into the state treasury through June, increasing at twice the pace of last year's total.
Kagia said the increased enforcement and padlocking of illegal cannabis stores under the new law approved by Hochul and the state Legislature had an immediate and significant impact on increasing revenue for licensed cannabis retailers.
According to OCM research, sales at cannabis retailers operating before and after Operation Padlock in the spring more than doubled (jumping 105%).
Hochul's office claimed that the pot market is now reaching new highs.
“Thanks to Governor Hochul's leadership, more than 1,000 illegal dispensaries have been shut down and the legal market is booming with nearly $1 billion in sales,” said Hochul spokesman Miguel Arreola.
“Her policies will transform the industry, increase profits for local businesses, and foster reinvestment in communities most harmed by historic wrongs, while building the most equitable cannabis market in the country.” ” added the Hochul representative.
But social justice advocates complain that too few licenses have been given to businesses in areas disproportionately affected by the drug war at a time when marijuana was considered a crime. 5% of this amount was set aside for the “stock” market, for a total of 2.5%.
Still, Kagia said, “It's completely premature to draw any conclusions.” There are still a huge number of licenses to be issued. ”
He said the Cannabis Agency had introduced a better and more responsible licensing process, including making staff responsible for dealing with applicants and licensees a “point of contact.”
Staff has also been increased to reduce the backlog of applications, Kagia said.
New York has turned a corner and is now an emerging market poised for growth, according to an analysis by Leaflink, an online platform where cannabis retailers buy cannabis from wholesalers.
“It's clear that New York is moving past some of the early challenges and meeting the high expectations surrounding this market,” said Rodney Holcomb, LeafLink's vice president of policy. “As with any new market, more work is needed to ensure that companies have the environment and the right tools at their disposal to run their businesses effectively.”
New York can only go up. A recent study reported that it could support 1,000 new pot shops.
According to a report from LeafLink, New York state has more people living in basements than any other state that has legalized marijuana. For example, Oklahoma has 1,900 licensed pot shops. There are currently 245 people in New York.
There is also data on cannabis sales per resident. Alaska tops the list at $350 per resident, while Michigan's revenue exceeds $300 per resident.
New York state's revenue is less than $50 per resident, about half that of neighboring New Jersey. This is despite both states legalizing marijuana around the same time.
One marijuana retailer in downtown Manhattan says the best of times are ahead.
“New York's cannabis market is certainly starting to take off. Particularly here in New York City, there is a growing desire for regulated, high-quality products in tandem with efforts to curb the illicit market.” Owner and Founder said Vanessa Echan. Atta Dispensary, located at 52 Kenmare St., is the first cannabis retail store to open in Chinatown.
“Since our grand opening nearly two months ago, our customer base has consistently increased and we have had to increase the frequency of ordering certain products to ensure inventory.”
