New York’s $1 billion cannabis market 💰

NY, NY
The state of New York cannabis 🔍

New York’s Office of Cannabis Management, the chief regulatory agency, released its 2024 annual report breaking down the growth of the state’s cannabis industry.

The headline: New York cannabis retailers sold nearly $1 billion worth of cannabis in 2024, a strong number after the industry’s tumultuous rollout. 

Zoom in: As of December 15, 2024, the OCM issued 1,394 adult-use cannabis licenses, with more than half (52%) granted to Social and Economic Equity (SEE) applicants. 

The state has opened 156 dispensaries, as of December, generating over $64 million in tax revenue for the state.

And the OCM projects to have 625 dispensaries operating by the end of 2025. 

The OCM also launched the Legal Online Cannabis Activities Locator (LOCAL) Map, a tool that helps residents see where legal dispensaries are located, license applications, and other information.

The equity report: The OCM also published a report focused on social equity in the cannabis industry.

The report says the OCM provided support to over 500 equity license applicants, and highlighted the state’s work in providing safeguards from predatory practices, especially after reporting in The City highlighted the program’s challenges.

The OCM says it will focus this year on expanding incubation programs, enhancing regional economic development efforts, and enforcing ownership rules.

We should note that we interviewed the OCM’s former chief equity officer, Damian Fagon, about his tenure at the agency last year. Watch it here. 

Not without challenges: Despite much progress, New York’s cannabis market continues to face lawsuits, injunctions, competition from the unlicensed market,  and criticism from the industry.

The latest injunction was brought by four cannabis operators who say that the state’s decision to allow new license applicants to bypass rules that direct applicants to secure real estate is unfair. 

It’s another legal proceeding that will put more sand in the gears of getting stores open. 

And more: The OCM will hold its first public meeting of 2025 on January 9 at 1pm. 

-JB

“Since taking action to close unlicensed shops, we have seen legal sales skyrocket – a testament to the hard-working business owners who have helped create the strongest, most equitable cannabis industry in the nation,” New York Gov. Kathy Hochul said on X.

The rescheduling hearing 👀

Village Farms International and Hemp for Victory have filed a renewed request to disqualify the DEA from participating in the rescheduling hearings, arguing that the DEA's stated opposition to loosening cannabis laws and improper contact with anti-legalization group Smart Approaches to Marijuana has led to conflicts of interest. The parties are calling for a special hearing to investigate these claims and ensure transparency.

Pennsylvania tries again? 🌿

Pennsylvania lawmakers say there’s renewed interest in passing a legalization bill this year, as neighboring Delaware is set to open its legal cannabis market. Lawmakers in both parties have spoken favorably of reforming cannabis laws — and Gov. Josh Shapiro has publicly called for legalization, reports Axios. 

A couple notable deals to highlight:

• Agrify, recently purchased by Green Thumb Industries, sold its cultivation business back to its former CEO, Raymond Chang. 

• Canadian cannabis firm Entourage Health Corp is going private in a deal with a major pension fund. 

• Tilray won a contract to supply Luxembourg with medical cannabis flower. 

• Curaleaf is expanding its line of hemp THC-infused seltzers, introducing low-dose, 2.5mg varieties. 

Delaware Marijuana Commissioner Rob Coupe will step down later this month, just weeks after the state awarded retail licenses, reports the Delaware News Journal.

Omar Sacirbey took over as interim editor-in-chief of MJBizDaily, he said on LinkedIn. We’ve featured Omar on our channel a lot in 2024, here’s the most recent from November.

Cannabis took center stage at the Golden Globes on Sunday, as host Nikki Glaser dropped an Indica joke at Harrison Ford’s expense. Watch it:

America’s marijuana industry is wilting | The Economist

Marijuana goes national: 7 industry predictions for 2025 | MJBizDaily

How and why we should preserve Pa.'s hemp industry amid marijuana legalization | GoErie

The Truth About Cannabis: This Doctor’s Perspective | Doctor-Approved Substack