New York Shuts Down Over 1,000 Illegal Cannabis Shops

New York authorities have shut down over 1,000 illegal cannabis shops, significantly boosting sales for legal dispensaries by up to 100%. In total, the Cannabis Enforcement Task Force which was instrumental in this crackdown seized over twelve tons of illicit products valued at more than $110 million, leading to substantial improvements for legal cannabis businesses in the state.

New York City and State authorities have announced the closure of over 1,000 illegal cannabis retailers through the coordinated efforts of multiple agencies and task forces.

Authorities had estimated that there were around 2,900 unlicensed sellers in New York City, compared to about 60 licensed dispensaries currently in the city and 150 across the state.

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The Gray Market of Cannabis in New York

Governor Kathy Hochul, Mayor Eric Adams, and other New York City officials announced the closure of 779 illegal shops in New York City alone, while the New York State Illicit Cannabis Enforcement Task Force shut down 230 more shops across the state. This brings the total number of closed unlicensed cannabis retailers to over 1,000.

Governor Hochul explained the significance of these actions, stating: “Earlier this year, I adopted new enforcement powers to quickly and permanently shut down the thousands of illegal cannabis retailers across New York that sell potentially dangerous products—many of which target children and teenagers—and divert sales from hard-working, licensed store owners.”

The crackdown on illegal cannabis activities is expected to have a profound impact on the legal market. Legal cannabis shops in New York City have seen their sales increase by an average of 72%, with a third reporting sales increases of over 100% since the enforcement measures began.

Governor Hochul stated: “I am pleased to join Mayor Adams and other officials in celebrating a major milestone and commending the law enforcement teams who have closed over 1,000 unlicensed shops across the state, bringing us closer to our goal of creating the strongest and most equitable cannabis industry in the country.”

Strengthening Enforcement Powers

In April, Governor Hochul introduced new initiatives as part of the adopted budget to end illicit cannabis activities and protect the legal market. These initiatives have given the Office of Cannabis Management (OCM) and local municipalities increased powers to act against illicit shops and those who enable them. These initiatives constitute the most robust set of policies adopted to date to combat the illicit cannabis market.

The Cannabis Enforcement Task Force, launched on May 21, 2023, is a key element of these efforts. Led by the First Deputy Superintendent of State Police, it coordinates personnel from multiple agencies to comprehensively tackle illegal cannabis activities.

The task force’s approach includes working with property owners to evict illegal dispensaries and penalizing those who do not take action against tenants operating illegally.

Since its inception, the Task Force has shut down 230 illegal cannabis shops, and more than 3 tons of illicit products valued at $22 million have been seized. The total value of illicit products seized in the state since May 2023 amounts to over 12 tons, valued at more than $110 million.

Felicia A.B. Reid, Interim Executive Director of the OCM, praised the Task Force, stating: “The Task Force has played a crucial role in cracking down on illicit cannabis operators. Every day, the OCM and its partners across the state work hard to ensure a fairer, safer, and more equitable market for all, supporting New York’s legal cannabis businesses.”

Testimonials from Legal Business Owners

Legal cannabis business owners have expressed their support for the enforcement measures and the changes they have brought about.

Osbert Orduña, owner of The Cannabis Place, stated: “When I opened my dispensary, we were surrounded by illegal cannabis shops taking customers from those of us who followed the process and did things right. Earlier this year, I expressed my support to Governor Hochul for shutting down these shops, and today, I am proud to say she has delivered. Now, our community has access to legal cannabis, my sales have increased by 105%, and I am hiring staff to meet the growing demand.”

Similarly, Leeann Mata, owner of Matawana, highlighted the dramatic improvements in her business: “We have seen dramatic changes in our business since Governor Hochul took action to shut down illegal shops. Thanks to Governor Hochul, visits to my store have increased by 3,000% over the past 60 days, and this month, I sold about 500% more products than in the months before enforcement began.”

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(Featured image by Luca Bravo via Unsplash)

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