New York Sales Far Below Expectations, Trade Group Warns, As State Takes Action
June 27, 2023Legal cannabis sales in New York State totaled just $16.5 million through May, according to the Coalition For Access To Regulated & Safe Cannabis, a group backed by medical cannabis operators. The state is not on pace to reach the projection of $56 million in state tax revenue for the year and is barely on pace to eclipse Montana’s $42 million in cannabis excise taxes despite having nearly 20 times the population. To date, 14 licensed recreational-use dispensaries have opened statewide, with the majority of those located in New York City. Among other missteps, the report alleges that the state’s promised $200 million social equity fund remains completely unfunded.
New York regulators issued the first retail licenses for the Finger Lakes region in recent days. The Cannabis Control Board (CCB) issued 36 new licenses statewide, seven of which were for the Finger Lakes. The area was the last part of the state affected by a lawsuit over out-of-state operators which had left the CCB unable to continue the retail rollout there. With the settlement of that suit in recent weeks, that process can finally continue.
Meanwhile, governor Kathy Hochul announced initial results of the crackdown on the 1,000-plus unlicensed retail locations in New York City. “I’m proud to report that in just the first three weeks of our efforts, we’ve seized nearly $11 million worth of illicit products off the streets,” Hochul said. “These unlicensed businesses violate our laws, put public health at risk, and undermine the legal cannabis market, and with the powerful new tools in our toolbelt we’re sending a clear and strong message: if you sell illegal cannabis in New York, you will be caught and you will be stopped.”—Danny Sullivan
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