As New York regulators anticipate surpassing $1 billion in marijuana sales since the market launched in late 2022, they’re encouraging adults to give the “gift of community” by buying cannabis locally this holiday season.
At a meeting of the New York Cannabis Control Board (CCB) on Tuesday, members marked various accomplishments during the state’s second full year of legal marijuana sales, while also approving additional licensees as the market continues to expand.
Felicia Reed, acting executive director of the Office of Cannabis Management (OCM), presented the agency’s year in review report, which showed the number of licensed cannabis businesses growing to 261 in 2024. With that, sales have also spiked, reaching about $919 million to date.
“That means a quadrupling of tax revenue, a portion of which goes right back into community reinvestment,” Reed said.
John Kagia, director of policy at OCM, said that, based on the estimates for what we’re looking to do through the end of the year, we will comfortably break that billion dollar mark for the first time before the end of the year.”
“That’s a billion dollars worth of legal retail cannabis sold to adults in New York State. It’s a billion dollars of cannabis that is not being sold in the unregulated market,” he said. “And you know, at roughly 10 percent of taxes going into state coffers and state programs, it’s $100 million of revenue being generated to fund mission critical programs for the state. This is just the beginning—but what a start.”
Meanwhile, regulators are also reiterating their call for cannabis consumers to buy local as the holidays get underway, as they similarly did last year.
“New York cannabis is fostering opportunities for communities and people historically impacted by cannabis prohibition to thrive in this growing industry, so this holiday season, please consider giving the gift of community support by shopping at your local licensed dispensaries,” CCB Chair Tremaine Wright said.
“Purchasing from New York’s cannabis businesses not only ensures product safety and quality, but it also uplifts our entrepreneurs and strengthens local economies during this festive time of the year,” she said.
After a slow rollout in its first year marked by lawsuits and other delays, legal marijuana sales in New York have picked up significantly in the past several months. Regulators say that’s the result of more licensed businesses opening as well as what they describe as a successful crackdown on unlicensed shops.
This spring, for example, officials in New York City launched Operation Padlock, an enforcement initiative meant to shutter illegal storefronts. Since then, licensed shops that were open before the operation began have since seen sales climb 105 percent, according to an OCM survey.
Gov. Kathy Hochul (D) argued in June that there’s a direct correlation between the stepped-up enforcement and “dramatically” increased legal sales. A report by state officials earlier this year found both “growing pains” and “successful efforts” in New York’s marijuana market launch.
In August, Hochul lauding what she called the state’s “smokin’ hot” marijuana market, as the retailers in state passed the half-billion-dollar mark in legal sales since the market’s launch.
The governor also said in June that the state’s escalated enforcement actions against illicit marijuana shops is resulting in a significant increase in legal sales at licensed retailers.
She made the comments amid criticism from equity-focused activists over what they see as a “corporate takeover” of the cannabis market, citing reporting about the administration dismissing concerns from state officials about a “predatory” private equity loan deal the state approved to provide funding for startup cannabis retailers.
Certain advocates say Hochul has “falsely” blamed the legalization law itself for the state’s troubles with the illicit market, without taking responsibility for the administration’s role. To that end, there has been criticism of the governor’s ousting of Chris Alexander as executive director of OCM earlier this year.
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In an attempt to rein in unlicensed sales, the governor in February called on big tech companies such as Google and Meta to “do the right thing” by taking steps to stop promoting illicit marijuana shops, which have proliferated across the state.
Meanwhile, New York officials this summer rolled out a broad plan to encourage environmental sustainability and set energy use standards within the state’s legal marijuana industry. It’s part of regulators’ broader goal of promoting economic, environmental and social sustainability in the emerging sector.
In June, state regulators also formally approved rules to allow adults 21 and older to grow their own cannabis plants for personal use.
A top New York lawmaker also introduced a bill in June to legalize psilocybin for adults, provided they obtain a permit after undergoing a health screening and educational course.
In September, meanwhile, the state announced it’s preparing to deploy up to $5 million in grants funded by marijuana tax revenue as part of an effort to reinvest in areas disproportionately impacted by the the war on drugs. OCM said the awards aim “to redress a wide range of community needs—from housing to childcare to job skills training and many areas in between.”
Meanwhile, a group of 18 organizations recently wrote to New York’s governor to express dismay at what they described as marijuana regulators’ “efforts in service of big corporations at the expense of small business and equity outcomes” during the latter half of this year.
As New York regulators anticipate surpassing $1 billion in marijuana sales since the market launched in late 2022, they’re encouraging adults to give the “gift of community” by buying cannabis locally this holiday season. At a meeting of the New York Cannabis Control Board (CCB) on Tuesday, members marked various accomplishments during the state’s second Read More
