DataTrek co-founder Jessica Rabe was interviewed by Crain’s New York Business on the US legal marijuana industry. Here is an excerpt:
….”Let’s talk weed. Will the black market end when recreational cannabis becomes available in New York?
I doubt it. The black market in California is twice the size of the legal one. You already see unlicensed trucks and stores selling flower and edibles in Midtown. When it’s legal for stores to sell cannabis, it’s going to be tough to compel users to pay more, especially with inflation so high.
How can the state crack down?
It sent cease-and-desist letters and threatened charges, but police and prosecutors aren’t doing anything. This is going to be a challenge for the state’s ability to collect taxes on it.
What kind of tax revenue are we talking about?
Colorado generates more tax revenue from cannabis sales than alcohol or tobacco. It collected $423 million last year on $2.2 billion in marijuana sales. I think New York could exceed those figures because its population is much larger than Colorado’s, and it gets lots of tourists, too”….
You can read the full article here on Crain’s NY Business.