Legal weed markets across the country are struggling to compete with nontaxed, illicit businesses, where consumers get better deals, despite potential health risks.
While it's an issue in states like Colorado, Michigan and Washington, it's a much bigger problem in New York. Unlicensed businesses are "taking a pretty hefty percent of the potential market share," according to Amanda Reiman, a researcher at cannabis intelligence company New Frontier Data. None of the 36 newly licensed dispensaries in New York have even started operating yet.
Reiman said her firm doesn't track data on the many illicit businesses that have taken root across the country, but she estimates the national market is worth around $60 billion. The legally regulated industry is just half that, she said. Without access to traditional banks, legal marijuana businesses are forced to operate in a cash-only model, and they can't access loans, capital or even use basic bank accounts.
"California is getting decimated by their illicit market that's thriving because legal products are more expensive, more regulated, and have more taxes," he said. "They just couldn't compete."
Well the doses are too low. I want strong edibles, maybe some psilocybin mushrooms.
Because greedy state governments over regulate and tax
Yeah maybe if some states dont overtax the shit out of it? An 8th at medical dispensaries is $50-60. Why pay for that when my local plug got that zaza for $30 an 8th same quality as medical
Who didn’t see that coming? It’s not about the “recreation”, it’s about the high. Black market is evidently better with the fentanyl, than the cool aid of dispensaries. Time to shut it all down
One could also say the legal market is undercutting the black market 🤣🤣
Yeah cuz the taxes to buy legally are insane. Dumbest legislation we ever passed was to make weed legal
Also maybe stop charging like 45 50 a G for Reggie trash you call Dro. I get actually REAL good quality Dro for 25 a G illegally.
Yeah lol its cheaper. WHY WOULD I GIVE MONEY TO THE GOVERNMENT WHEN I CAN GIVE IT TO BILLY BOB. he grown it better anyways
Who could have seen this coming
it’s called competition. retail will need to lower their sky high prices to compete
As it should
lol gee why are the state police taking all the stuff out of that car full of women and kids in the middle of nowhere at 2am carlos?
Yes, because drug dealers r some of the best capitalists. And they don't have to deal with govt regulations and taxes.
Didn't see that coming...said no one ever.
Cos it should be legal...
Duh!!!! You think
No shit….
How is this a surprise you don’t have to give your name to the government which could effect you health insurance. Plus it’s cheaper and they deliver it to your door! He who despairs of the human condition is a coward, but he who has hope for it is a fool.
Good to know for those who defended legalising the market would be the end of ilegal market and trafficking and a way to tax and make money by governments! ⚡️🐍🦉🏰
Bad management then
duh
They also sell to minors
In Canada they only let you buy a pack of edibles up to 10MG 😂. So you gotta buy 10 packs to hit 100MG. It’s hilarious. Meanwhile i can buy a 1500MG bar for 45 bucks
Of course. Not surprised
Better cal the police!
It’s because the only thing dispensaries can deduct from FEDERAL taxes is cost of goods sold and literally nothing else while other industries can deduct many things from their gross income
ROFLOL
No kidding?!!
Kinda objective of black markets.
Price weed competitively, and the black market will dry up.
'despite potential health risks' name one person who has ODed and died from smoking weed....
Of course it is. Why would I want to pay for an overpriced product plus be taxed on top of that?
This is evidence that it should be cheaper. You don’t see black market alcohol, do you?
Surprise surprise
WWE fan.
🤔🤔🤔
I'm guessing it's cheaper off the street. I read that here in Florida you pay a quack $300 for a license, then get a prescription for 6 months, then go back to quack...repeat. seems sketchy to me.
No, it's not! You can plant a seed in the ground and let them produce it should be the value of that… The black market is no different than the legal market. The consumer is getting robbed either way.
Lol…do you know what the biggest problem is in the legal marijuana business Where to keep all the CASH. Seriously the 1 issue. Literally building storage buildings for it. Long overdue to federally decriminalize.
You're title is wrong. The insane taxes states impose on marijuana sales are killing the legal business.
Idk why people want to buy from some drug lord that sprays imidacloprid on their weed and hangs his employees from telephone poles. But yeah, maybe don't charge so much.
Why would anyone lace fentanyl with weed lmao
It’s what happens when state government have no idea and put really high taxes, it becomes uncompetitive against the black market
That's how you stay in business so...no surprise. cannabisusa
love it. 1$ per gram or go fuck a biker.
MohammadBroghani and MohammadGhobadlou have been transferred to solitary confinement, there’s a high chance they’re going to be executed in hours! Please spread the word, don’t let them be executed, they’re innocent!!!
While the financial benefits of legalizing marijuana are clear, it's important to also consider the potential non-economic costs and consequences and address them effectively.
MohammadBroghani and MohammadGhobadlou have been transferred to solitary confinement, there’s a high chance they’re going to be executed in hours! Please spread the word, don’t let them be executed, they’re innocent!!!
C’mon it’s the legal businesses cutting into the local dope dealer’s territory.
You're welcome
I'm devastated
Because chads can’t grow for shit
The issue is the price floor set by governments. Let companies be efficient and compete on price and the black market will go away.
This is a surprise? An illegal cash business is so much easier than a legal cash business.
Because government and lawyers got greedy and push the licensing and taxes too high now they have created an illegal smuggling market like cigarettes. More power jobs IRS and FBI now they will have to investigate..lol
In Canada and US
We call it the gray market
I wonder why black market tomatoes aren't having the same effect?
Thanks for Noticing
And it will continue to undercut legal business until licensing and sales aren't bull shit. Fuck the legal market.
Your black market weed is grown in basements in welfare houses and on reserves in Canada at zero risk to the gangs growing it. Its traded straight across for toxic drug from gang networks based on the United States. the delay may be intentional, to protect that vast premium.
Or, Marijuana’s legal businesses are undercutting black market.
This is why 100% legalization is the only way; otherwise it doesn’t really address the black market that is inevitably created by any prohibition.
I’ve said this before, but the only way to cripple the illegal market is to underprice it. If the levels of taxation make that impossible, the black marketeers will continue to thrive. Shouldn’t be that hard to understand…
So
Legal business is undercutting into the black market **
In the real world, nobody's buying weed on the street anymore because the product from a dispensary is so reliable and doesn't require you to hang out with criminals.
setiap penjualan tembakau sudah dipajak....
Taxes are too high
If only there was some way to make it all legal…
you don’t say
Legal market was unaware of actual prices people were paying
Overprice weed , it’s need to be real world prices
Nasty!
Welp, when you sell legal weed for scam weight prices and expect yearly dues and upfront license cost, don't blame the weed smokers or the street dealers for this one. Heck, I don't even have a dog in this fight cuz I stopped after my lungs started hurting due to asthma.
What?
Good legal is still too expensive
It doesn't have to be this way. Model it after alcohol & watch 75% of the illicit market go kaput.
Black market was around for over 100+ years before Politicians came along.
Good
Because the black market was here first.
Put the seeds in bird feeders, it'll be growing cross country before long. Pic your own
Good!
The prices most of them charge, it won't be difficult to do. The black market is probably doing more business after legalization.
Maybe it should be federally legal so they can take advantage of all the tax deductions regular businesses take advantage of
POTUS Legalize marijuana. Take if off sch 1 list. Please and thank you.
Breaking news everyone: government can't sell product that sells itself!
Stop taxing weed into oblivion. 37.5% tax on weed is ridiculous. Beer isn't taxed like that and it is way worse than weed.
Good grief.....
then legalize it in order to reduce the illicit market! This would also bring benefits for companies and consumers!
Because politicians want too much in their pockets to give the legal industry any room to flourish. It's the mafia all over again
Wait till sellers in the black market pay tax.
If they didn’t tax the shit out of it. We never learn
If governments would quit creating monopolies and let the free market reign, this problem wouldn't exist.
me on weed! lol 🤣
You won’t have to do much research to figure out this is my fault.
Government doesnt deserve our taxes
Every state got greedy with the taxes. You over tax people they go black market. WTF did they think would happen when you had a black market that had already been around for decades?
I sold great dope for $400 a pound in 1979…
There still must be a problem with the legal market. Otherwise this problem wouldn't be. 💀👹👼👑
Oh so now its a health safety concert to buy weed from someone who didnt pay the fed 100k to open a weed shop? What the hell do you think we did before there were legal weed shops? And here I am still alive, and still smoking.🤷♂️
Weve been doing just fine with our black market this whole time but now that y'all wanna make money it's a problem
No other legit business costs as much to get off the ground than a cannabis farm/dispensary. Not even liquor stores. Those legit business are capitalizing on the hard work of people who cultivated that product under constant threat of prison. Support your local growers.
who could have predicted...
The same government and news agency who once supported propaganda? Threw innoncent people behind bars? You lost and now want to benefit from taxes from “legal” weed sales?
Simple fix,reasonable state sales taxes on cannabis purchases and elimination of the 280E tax code for state legally licensed cannabis operators and the illicit market would crumble overnight.But it will never happen with the lackadaisical effort of the 117th congress on cannabis
No it is not. Legal pot shop is just example of corporate greed trying to cash in on pot market
Because New York State is taking to long to let stores open, this really isn't that hard but all their regulations and social Justice bullshit has really fucked up this whole process
Too much taxes and overbearing regulation. Should be treated like any garden 🪴 plant
It's because taxes/prices are too high on legal weed. Believe me, everyone would LOVE to just buy some pesticide-free, lab tested weed from the store, but when it's multiple x more expensive, no one without cash to burn will buy it. They want to help poor communities or not
Maybe if the government stopped selling shit weed for so expensive people wouldn’t have to go buy off their local dealers.
Good
Dispensaries and farms have such steep fees only the wealthy can afford owning them, and the product itself is taxed at a ludicrous rate. Meanwhile, it's a plant anyone can easily grow. So yeah, people are gonna grow the fun plant instead of overspending.
PLegalization Good. The status of regulatory measures in regards to a MEDICINAL PLANT are absolutely garbage and literally EVERYONE knows that, they just don't seem to care.
lol
Who could have seen this coming? Lol
Only if your regulations are overly burdensome which they are in most states because of old people.
The state only views recreational sales as a massive cash cow to be milked dry , yet still wants to kidnap and harass citizens for growing their own plants. Look at alcohol prohibition.
DUH
WHO CARES LET THEM
Have not bought from the black market in years. I want to know where the plant came from how it was grown etc., and if I want a specific strain the dispensary will have it and the knowledgeable staff will be able to help me. Would like like to be able to grow my own.
Quit taxing the shit out of legal marijuana.
This should surprise no one. It was predicted all along by those watching the early (greedy) states like Ca.
Can I just get some legal 5-7% sativa instead of blackmarket 30% indica. I'm not dying of cancer. I got shit to do.
It’s simple !!!! LOWER UR PRICES !!! . Why pay 3 times the amount when u can get the same or better from a local grower ? They HAVE to lower their prices
open banks to marijuana businesses! make it like any other business. then we'll talk.
Hahahahahaha! I love it!
U mean drug dealers on the corners...foh.
ThAn mAkE iT AlL LeGaL duh
Glad we are focusing on the right problems...🙄
Not here in Maine. I get premium flower legal Oz’s for $100 all day long. I can’t get that on the black market.
People pirate Microsoft programs & movies, it never occured to anyone that people would continue to sell weed?
SAFE alone will help in the short term giving legal companies more working capital but in the long term it won’t make the legal market more profitable when they’re taxing customers from every corner. It’ll take a Safe act & a sales price reduction to compete with the black market
Lol legal Businesses!
its easier and cheaper to buy on the street. More stores so its readily available and competition reduces prices.
Legal marijuana is too expensive.
how much for a lid?
Then deregulate legal marijuana. It's not that hard.
Been going on since the legalization started. Why pay the additional price for state taxes?
How are any of these Marijuana businesses legal when it is still considered an illegal substance under federal law? It is all in a gray area, even if a state has voted to decriminalization it.
Because it’s way more expansive than what you can get from your dealer.
I pledged our NY marijuana market rollout would be a blueprint for the rest of the country. Turns out it’s a blueprint of exactly what not to do.
excessive taxes are why there problems
Hahaha… there is no black market… it’s a weed.. the government is trying to just get the tax dollars but in reality they can’t… it’s all just a scam
Stop taxing legal business so high. Next
People prefer the gooooood stuff not that government pot made in China
They are not “undercutting” they are just selling it at the same price without paying the insane state and local taxes…
The legal market has been rigged for millionaires. What do they expect?
Who could have predicted that onerous taxes & fees, excessive regulation, and restrictive zoning would result in high prices for legal marijuana?
The reason for legalizing dope was to let people smoke not make billion dollar companies operated by the same type of people that would advocate tossing you in the can for having a little stash on you only a few years ago.
Let artisan growers sell.
WTF were you expecting when it became legal. There will be more pot plants than tomato plants in back yards.
The rigged market marketing made possible by slavery promoting network.
That's weird. The legal weed buried all the illegal weed in WA state. No way to compete. You can cheap decent weed at the store. Can't speak for other states though.
Good
No
Yet, legal industry is still massively profitable. Black market prices in my area have dropped by roughly 5x since legal market was established. They had already dropped 5x with the medical dispensaries several years prior. I am almost 45 and I pay 10x-15x less than when I was 18
So legalize and formalize banking and regulate retail and stop with the ridiculous half measures already
In California Chinese taking over legal cannabis grows and turning them into black market grows Official_Metrc CDFA_ISD they don't even inspect when legal business that have been sold to a new ownership and that's how they get away because government agencies don't care
this is why I decided early not to invest in this area
The counter to high prices in the legal market is the illegal market. You'll never make money in legal weed because illegal weed will always be cheaper. 🤪
You can't claim underground businesses are hurting legal ones when the legal ones haven't even started operating!!! This is a fafo moment. You fucked around for 2 years after the people voted. So the people found a way around your bs procrastination! Good luck undoing this.
agree: 'Once fully legal and everywhere the black market will be destroyed'
When you can grow your own , why you need to buy from legal or black market.
Illegal gambling will be the next big money maker.
Black Market is just another name for the Free Market that resists restriction and theft by the government.
Good
Because it’s better than the dispensaries.
Kinda feel like this wouldn’t be an issue if the US Gov would just decriminalize it federally and allow a couple plants for personal use. That would eliminate the black market.
'Legal'= over taxed, overpriced, over regulated low quality swag. Our pork gravy government can't even reschedule it or ease banking rules regarding it.
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it ain't rocket science. 'Consumers often turn to the black market for weed because they get a better deal there.'
'I didn't inhale...' lol
Blackmarket was quasi legal until they privatized prisons
6 leading Marijuana equities... TiLRAY down = 98%
Government needs to KYHOMOB. They over taxed, over regulated, and created the black and grey markets
Duhhhhhh
So is the southern border snd phentanal
What !!? The USA are not winning the 'war on drugs' !
Well then, legalize cannabis federally. Cannabis is less destructive than liquor & gambling!!!!!!!!!!!!!!!!!
And Fentanyl is killing tens of thousands, so what's your point?
That's what happens when you have a government that cant get shit right; add greedy fucking taxes to it and who wants to pay retail dispensary prices?
No shit Sherlock. The only thing that existed before it became legal was a black market.
It is priced very unethically in a lot of legal states so of course the black market will thrive … just mind boggling stupid that anyone in government would complain … if you don’t want the black market to flourish set the price right.
slavery promotion and misinformation media
Huh. Who would have thought that would occur?
Legalize works
Over taxation and regulation cause the need for a black market? Who knew?
It is called kagave in Kerala Kerala
Nobody warned us this would happen
The headline should read, 'Shocking no one, the government created another black market with it's actions.'
Need to cut taxes on cannabis products
I’m a disabled veteran and in Ohio I receive a 25% discount for my medical marijuana. My last purchase was a half ounce of Sativa (25% THC) for $55. If the black market can beat that. DM me now. Because don’t get me started on what the VA pays for loosing a kidney on active duty.
Make it 1$ .black market will die
Torontonian here. Too many weed shops now so prices and services are very competitive. It’s so mainstream, I actually believe people smoke less now.
PhilMurphy - N.J. entrepreneurs should be able to create small businesses to sell marijuana - with little limitations. Technology Twitter can support such small business. This will expand the Meta verse.
No surprise
We don’t need more pothead criminals.
yeah because big marijuana is charging insane prices for medical marijuana
It's tax rate is too high. It's still cheaper in most states to get it from a street dealer. You have to fix that if you want to combat the black market
Who are the real criminals? For decades police/dea made growers felons prison, unable to get a job. Now, a safer alternative to opiates, legal and oh a 35% tax rate, higher than the highest tax bracket before they pay income taxes. legal growers can’t make money.
The free market always wins. Even if it's not legal.
Taxes plus crazy prices is undercutting the legal business.
What a shocker. Lol
Just make it legal then, what are y’all (SenateDems HouseDemocrats) waiting on?
Of course. In California, there’s a 15% excise tax, 2-10% city tax, then a sales tax for a total of 25% to 35% total tax on legal businesses that are passed to the consumer. And the tax was supposed to go (partially) to stoping illegal shops. Horrible planning.
Well, it's only on account of fuck taxes, and fuck licensure.
Nobody could have seen this coming... oh wait, EVERYONE did.
Good. I hope both markets destroy each other.
Because it's cheaper. When you offer 'medical marijuana ' but insurance doesn't cover any of it like the do other drugs, people get it wh where it's cheaper. When I have to spend $50-60 on a cartridge in a dispensary or $30-40 elsewhere, I'll spend elsewhere.
Are we supposed to be surprised that black market marijuana business is out performing the legal business?
Black markets came first... who is cutting who here? Come on
How long did it take u to figure that one out?
… legal business is cutting into the black market. The black market was frowned upon for decades just for légala to come in and try to get a piece of the pie Not round here partner
You mean it didn’t go away ? Who could’ve predicted such a thing ? Why didn’t someone suggest this originally ?
Pretty simple. 100% legalization
Who cares, honestly.
Hard to take the criminal element out of what is basically a criminal enterprise.
Can’t tell peolpe where to spend there money. Cash 💵
Long may this continue!! 🙌🏾
All weed stores are technically federally illegal. The only thing they can deduct from federal taxes is cost of goods sold if you're a dispensary in a legal state. THAT'S why they can't make any money, they're handicapped compared to other businesses that can deduct many things
Yea , no shit? 😂
How do you estimate a black market?
Well yeah. Legalization rollout has been a fucking joke and the taxes are obnoxious.
Seems like there is a simple solution to this.
Bwahahahaha
Perhaps biden should reschedule the drug so banks can do business with legal states which would prevent much of the black market surge.
No shit
Make it legal then