Legal & Regulatory

The Merry Mess of Cannabis Legalization in New York

New York is stuck in an unusual legal limbo with cannabis now legal in the state, but no sellers authorized to sell it. Some entrepreneurs are taking matters into their own hands, however, as they attempt to get an early foothold in the multi-billion dollar cannabis market. The tactics we're seeing, which include the classic 'free gift with purchase', are similar to those employed in other states.

On March 30, 2021, New York became the fifteenth state in the United States to allow the purchase, possession, and cultivation of cannabis for all citizens over the age of 21. Yet nearly a year later, authorities have not issued a single license officially authorizing the recreational trade in the plant.

For more news like this, download our free cannabis news app.

New York Entrepreneurs Take Matters Into Their Own Hands

Of course, this hasn’t stopped some entrepreneurs in New York from starting their own businesses, creating a huge “grey market”. Dozens of dispensaries sell their product in complete legal limbo as authorities threaten penalties but police fail to intervene.

For many of them, the game is worth the risk. The New York market could be worth up to $4.2 billion dollars within five years, according to estimates by Forbes.

Industry Giants Stuck on the Sidelines

And, for now, the semi-legality of the local industry keeps industry giants like Curaleaf and Green Thumb (respectively 889 and 650 million euros in revenue in the first three quarters of 2021) on the sidelines in New York.

“We have seen, state after state, where the big fish come in and take over the whole market and where the little ones get screwed every time,” argues Lenore Elfland, who runs Empire Cannabis Club, a dispensary located in Manhattan. Better to occupy the ground now, even if it means taking serious risks.

New York Cannabis Sold With Creative Techniques

In theory, selling cannabis in New York without a license is not legal. “Offenders must stop their activities immediately or face the consequences,” insists Tremaine Wright, director of the Cannabis Control Board.

In order to avoid closure, some dispensaries are being creative. At Empire, customers must purchase a 24-hour membership card, which gives them access to a cannabis catalog. At Uncle Budd, it is possible to make a donation and receive, in exchange, cannabis as a gift — a loophole in cannabis laws that has seen use in other states besides New York.

The New York Cannabis Control Board does not see it that way, however. In February, it distributed formal notices warning that violators risked, at best, being banned from licensing when they are distributed, and, at worst, exposing themselves to criminal prosecution. But the semi-legal dealers do not intend to let it go, and they intend to take their slice of the giant New York pie.

(Featured image by Elizabeth Iris via Pexels)

DISCLAIMER: This article was written by a third-party contributor and does not reflect the opinion of Hemp.im, its management, staff, or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published by Korii, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions, or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Helene Lindbergh

Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.

Recent Posts

Ontario Increases Efforts to Combat Illegal Cannabis Market

Ontario is investing $31 million over the next three years to enhance efforts against illegal…

5 days ago

Hanover and Frankfurt Will Be the First German Cities to Legally Sell Cannabis for Adult Use

Frankfurt and Hanover are launching five-year pilot projects for legal, regulated cannabis sales to adults,…

6 days ago

CBD Decree Suspended By Italian Administrative Court for Third Time

Italy's Regional Administrative Court suspended the Health Ministry's decree labeling CBD as a narcotic, pending…

1 week ago

Which U.S. States Will Vote on Cannabis Legalization in November 2024?

This November, five U.S. states will vote on measures related to legalizing recreational or medical…

2 weeks ago

Italy to Be Investigated By EU Commission Over Proposed CBD and Hemp Ban

The European Commission has launched an investigation into Italy after its recent proposal to ban…

2 weeks ago

Prolonged Cannabis Use May Leave a Unique DNA Signatures

A new study has found that prolonged use of high-THC cannabis leaves a unique mark…

2 weeks ago