How Legal Marijuana Is Helping the Black Market

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Advocates often said legal marijuana would kill the black market. It turns out the opposite has happened.

Natalie Fertig is a writer in Washington, D.C., covering cannabis and politics.

Though each state has its own issues, the problems have similar outlines: Underfunded law enforcement officers and slow-moving regulators are having trouble building a legal regime fast enough to contain a high-demand product that already has a large existing criminal network to supply it. And at the national level, advocates also point to another, even bigger structural issue: Problems are inevitable in a nation where legalization is so piecemeal.

“If anything, it’s gotten worse" since legalization, Oregon State Police Sgt. Brandon Boice says. “There’s still high demand for Southern Oregon marijuana throughout the country, that has not changed.” “Law enforcement is just inundated with illegal marijuana and exportation,” Boice says. “There aren’t enough resources in place for us to do anything about it.”has become a massive headache for its neighbors like Idaho, the illicit markets thriving in parts of California and Massachusetts are self-inflicted wounds.

So in the interim, Samura has continued running his private club, one of a handful in Boston and Worcester, where customers can bring their own product—much of it home grown or purchased on the illicit market—and share and smoke communally. They are unlicensed and supposedly legal, but when asked by POLITICO, state and local officials disagreed on whose job it is to regulate them.

“It’s probably premature to say that we’ve had a big dent in the illicit market” says Steve Hoffman of the Massachusetts Cannabis Commission, the state’s independent commission created to monitor the licensed cannabis market. And, he adds, “I don’t think we’re ever completely going to eliminate the illicit market, I think that’s probably unrealistic.”

“You better have a lot of money and a whole lot of patience,” he says. “Because California is so not for everybody.” —but often the dispensaries just pop up again somewhere else. The city shuts off power and then the dispensaries buy generators. The LA city attorney has begun to go after landlords, levying $20,000 fines for every day the illicit dispensaries remain open.

“Of all the 542 cities and counties we have in the state, collectively, only a quarter of those allow retail locations,” Traverso said. “But to say there are no retail locations operating in those ... just because you ban [marijuana] doesn’t mean it’s not there.”

 

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Our analyst Peter Kusnic: “Legal marijuana is expensive due to regulatory costs, driving sales to the streets. Legal markets have issues to figure out, but the general trend is the looser the restrictions, the lesser the influence of black markets.” marijuana cannabis

Interesting stuff in here for my class on federalism and marijuana policy.

I think the ideal of advocates saying it would curb the black market comes from the ideal of seen being legal everywhere in the United States. Still you can’t argue with Denver not knowing what to do with all the money that was made off marijuana tax, and investing back into the

Hasnt it always?

I’m sure The legal market is Too much of a pain in the A** for ppl.

Duh.

its only because its not legal nationally.

When the authorities fail to investigate and close illegal dispensaries what do you expect to happen? This article is a pearl clutching hit-piece that doesn't prove what it's trying to say.

My boat has 50 holes in it and is STILL taking on water after I patched 7 holes! Why didn't it work!

PiratskaStrana

Which Big Pharma company is backing this article? Asking for a friend.

But it is still way cheaper in legal states, so who cares?

Turns out if greedy states see a cash cow and think their gonna tax their problems away, the customers they’ll depend on will acquire (better and cheaper) meds elsewhere. 🤷‍♂️ NJMMP after tax wants $500+ an Oz for mids, no concentrates flower only, an no home grow. 🤦‍♂️

If the Fed legalized it, that would help! LegalizeCannabis

When at least the price is in control so there is less illegal business.

Since when did marijuana become legal?

Lol. Can you think at all? For one, it has to be legal across the country. For two, if you impose restrictions that are too irrational, like when it was completely illegal for example, then you’re going to get a black market.

Don't care.. I will never pay some corporate a$$ for weed. My cannabis is free, unlike your market.

Marijuana is not completely legal and that is why the black market thrives

A dispensary stayed open past 10:00 pm = black market?

Damn, sounds like its time for sensible legalization with sensible regulations, rather than ridiculous taxes and hoops to jump through.

MJane is legal in Oregon and hasn't been too much of a big deal.

Well of course illicit trade is good to be more profitable than legal trade you don’t pay taxes you don’t pay insurance you might pay rent for the properties that you’re using but the government takes a hit.

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