It’s been more than a year since Maryland flipped a switch, turning the state’s string of medical cannabis stores into retailers open to anyone 21 and older.
Ahead of the rollout made possible by a ballot referendum, lawmakers deftly set regulations and taxes based on what’s worked and what hasn’t worked elsewhere. One goal? Make room for new businesses by attempting to suppress illegal sales.
So far, the already licensed businesses are drawing customers in droves. Month after month revenues and the number of sales transactions have reached new heights, and expectations are that retailers will reach $1 billion in medical and adult-use revenues in future years.
But that commercial boom didn’t make Maryland’s illegal cannabis market disappear. It created a government-regulated competitor.
Underground channels still exist in Maryland and in other states, even those with longstanding regulated markets. What policymakers can do is make laws that carve out enough turf so regulated, tax-paying cannabis businesses can run smoothly while operating alongside shadowy competition.
Low taxes, easy access to retailers and a tested, reasonably priced product can pull illicit cannabis customers over to a legal market, said Amanda Reiman, chief knowledge officer for New Frontier Data, a global marketing and data analytics firm that studies the cannabis industry, including consumer habits and trends. [Read More @ The Baltimore Banner]
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