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The Sales Of Recreational Cannabis In New York Have Exceeded $16.5 Million.


The sales of recreational cannabis in New York have exceeded $16.5 million.

Since the opening of the first dispensary in December, regulated adult-use marijuana sales in New York state have exceeded $16.5 million. However, despite initial estimates projecting sales of over $1 billion in 2023, the adult-use market in New York has faced setbacks due to lawsuits and bureaucratic delays, resulting in a slow start.

Numerous licensed equity operators have encountered difficulties in obtaining funding and suitable real estate to launch their businesses. Additionally, multistate operators, who hold the majority of New York's limited medical marijuana licenses, are still unable to participate in the adult-use market. As of May 11, only 10 adult-use marijuana retail stores have opened statewide, with six of them located in New York City. City officials estimate that up to 1,400 illicit cannabis retailers may be operating in the city.

Despite the limited number of retail stores and intense competition from the illicit market, legal retailers have achieved $16.5 million in sales since the first store's opening shortly after Christmas, according to Chris Alexander, the executive director of the state Office of Cannabis Management. State regulators anticipate a steady revenue growth in 2023. The agency has issued a total of 215 conditional adult-use retail dispensary licenses, which are reserved for nonprofits or individuals impacted by the war on drugs.

License issuance across the state experienced delays due to a lawsuit filed by an out-of-state applicant, alleging that state regulations unfairly favored New York residents. Additionally, critics, including social equity applicants, have raised concerns about the state's $200 million investment fund, which was intended to provide start-up capital for equity applicants but has yet to distribute any funds.


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