Slow Legal Cannabis Rollout Among NYC Metro Area Creates Boom in “Gray” Market
With the legalization of cannabis, the NYC metro area has experienced a slow rollout of their programs which has created a “gray” market for storefronts and businesses looking to sell cannabis without going through the regulatory process.
Legal, recreational cannabis has been rising and canvasing its way across the US. Delaware recently became the 22nd state to legalize recreational cannabis. With increasing support, more states will seek out their own legalization reform about cannabis.
The metro Tri-state area which includes New York (NY), New Jersey (NJ), and Connecticut (CT), have been experiencing a slow rollout of their legal cannabis landscape. This snail-like pace has led to a “gray” market of businesses and storefronts selling cannabis without dealing with the regulatory process. In New York City (NYC), the mayor’s office estimated that in their area, there are 1,400 illegal businesses selling cannabis without a license (1).
“Those legitimate businesses face stiff competition from shops that are not following the rules,” said Manhattan District Attorney Alvin Bragg during a news conference (1). “It is time for the operation of unlicensed cannabis dispensaries to end.”
Due to the “War on Drugs” propaganda campaign, state officials have been trying to fix past wrongs. The metro area has worked on this by adding in social equity components into their recreational cannabis programs. Such as, having a stronger focus on granting licenses to applicants who have prior cannabis-related criminal convictions.
“Every cannabis company should be focusing on hiring people who have had previous cannabis charges and people who have come from communities that have been impacted by the war on cannabis,” said social equity applicant Tahir Johnson, who’s about to open Simply Pure Trenton, in Ewing Township, NJ (1,2).
As the popularity for recreational cannabis grows, it has the premise to become very profitable. The national cannabis market is estimated to make $71 billion in sales by the year 2030, according to data from research firm, New Frontier (1). 10% of that estimation could come from the New York state market.
References
Ep 24, Part III: Data Transparency in Cannabis Testing with Yasha Kahn
December 26th 2024In the final part of this episode, Evan Friedmann and Yasha Kahn discuss the need for a national entity to centralize cannabis data collection, moving from snapshot data to continuous updates. They emphasize the importance of accurate lab data and adverse event tracking, suggesting QR codes on packaging to report issues. Yasha suggests harsher consequences for result manipulation and suggests collaboration between state departments and federal entities to support underfunded regulators. They also discuss the potential benefits of off-the-shelf testing and the importance of stability testing. Finally, Yasha shares his top three reading recommendations for the audience.
Ep 24, Part II: Data Transparency in Cannabis Testing with Yasha Kahn
December 12th 2024Evan Friedmann and Yasha Kahn, co-founder of MCR Labs, discuss the discrepancies between current regulations and data on mycotoxins and pesticides in cannabis products. They highlight the need for updated regulations based on new data, emphasizing the importance of accurate testing and labeling. They also discuss the issue of result manipulation, particularly in THC content, and the need for public health officials to address this. Yasha suggests making testing data public to enhance oversight and suggests a national entity to manage this data for better consistency and public safety.
