In California, medical marijuana has been authorized since 1996. In 2018, recreational use grew to become authorized within the state as effectively. With that, the state grew to become the most important authorized marijuana market on the planet, in accordance with date from BDS Analytics.

Unfortunately, this isn’t the one manner California tops the charts on the planet of hashish. The state additionally has the most important marijuana black market on the planet.

The Numbers: Black Market Marijuana in California

In 2018, legislation enforcement officers in California reported destroying 1.6 million marijuana crops as a result of they have been illegally grown, in accordance with The New York Times. What does this imply for the financials of the business? Halfway by means of 2019, black market gross sales have been projected to succeed in $8.7 billion in California, in accordance with the LA Times. Meanwhile, authorized gross sales have been on monitor to succeed in somewhat over one third of that number at $3.1 billion.

The black market has an actual price for the state as an entire in addition to for entrepreneurs within the business. When California first legalized marijuana, tax income was predicted to succeed in $643 million through the first 12 months of authorized gross sales, in accordance with BDS Analytics. In actuality, the state solely took in $345 million that 12 months.

Take a look a MedMen for instance of how the illicit market is hurting dispensaries which might be sticking with the authorized route. By the time the second half of 2018 got here round, this main retail chain was battle to make ends meet. The purpose? They couldn’t compete with the low costs being supplied by unlawful sellers. Meanwhile, different retailers report the frustration of competing with unlicensed dispensaries operating in plain sight. (Read Full Article)

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