Pot Industry Underestimates Old-School Dealers

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Heard on the Street: Even in states where cannabis is fully legal, the black market is proving more resilient than expected

Traditional drug dealers are still formidable competitors in U.S. states where cannabis is legal. Governments planning for huge tax windfalls and investors expecting rapid market-share gains have to adjust to a slower burn.

Legalization of cannabis in California, currently the world’s largest recreational pot market, has been bumpy. Restrictions on adult use were lifted in January 2018 and the Californian legislature projected $1 billion in state and local taxes from cannabis sales within a few years. However, the actual windfall...

 

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Politicians need to learn that over taxation and tariffs stifle the free market and give a competitive advantage to black market sales.

We know who won the War on Drugs.

And we are surprised by this?

Cannabis won’t flourish until federal ban is lifted

Get your prices right and the black market will die.

It is estimated 56% of all cigarettes in New York are black market. 99% of all pot sold in NYC is illegal. Pot on the west coast is half the price of pot in NYC now. And medical marijuana is even more expensive.Legalize it and tax it and regulate it and let’s see what happens

Dopestofdope313 Legales Cannabis darf nicht wesentlich teurer als das Illegale. Dann geht es

How do you lose when you’re making the rules, own the chips, and the enforcement? The Black Market can’t take the gov to court for a monopoly. Lower the cost flood the market then “boil the frog”

That's it? That was like a short high school report.

It’s almost like pot being illegal in the rest of the country’s gives them the ability to supply that without fears of being caught growing

In Canada, the black market is selling for reasonable prices, gov is not

So the liberal experts were wrong again.

You mean you dont want to pay 25% tax?!?! CRAZY

El rotativo esta viendo el peligro de las economías subterraneas

Taxes, obviously , take most of the profit . So, better go with gray economics

Tax free.

Huh. Who'd 've thunk

Prices + potency + below 21 population A lot of people also get it from someone they know, hard to make the switch

Your neighbor grower will charge you way less than the dispensary. Why pay 60-80 for a 1/4 when your neighbors will sell you an ounce for 100-120

The booze market for underage kids is also a ‘black market’. I’m sure a lot of this is due to the age restrictions. I’m not saying the age restrictions should be lifted, but this isn’t unique and it shouldn’t be unexpected.

Maybe because traditional dealers aren't marking up by 25-30% in taxes. Hell, if anything, they can bump up their prices 10-15% over what they used to be and make a nice profit by undercutting the legal sellers.

Prices.

Knew that!

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