New York state marijuana regulators on Tuesday approved another 123 cannabis business permits as legal sales continue to gain momentum following a slow start.
After posting a record $100 million in sales for August – a reporting period that also included the last few days of July – the state Office of Cannabis Management (OCM) expects regulated marijuana sales in New York to top $450 million for 2024, officials said Tuesday.
“We are cooking with gas,” John Kagia, OCM’s director of policy, said at a state Cannabis Control Board meeting, as NY Cannabis Insider noted.
The recovery in New York’s regulated cannabis market is welcome news to both state officials and the nascent industry.
New York legalized recreational marijuana in March 2021, but the first sale was not recorded until late December 2022, a slow start marred by lawsuits challenging the program’s equity-first regulations as well as competition from a rampant illicit market.
The worst of those lawsuits delaying the issuance of permits were resolved late last year.
And this spring marked the beginning of a statewide crackdown on the thousands of unlicensed retailers across the state.
Officials have closed 349 unlicensed stores since May, which in turn boosted sales in the downstate area, which includes New York City, by more than 50%, OCM said.
Twenty-six of the 123 permits issued on Tuesday were retailers, just one of which was a social equity applicant.
Regulators also approved another 24 microbusinesses permits, which allow licensees to cultivate and process marijuana as well as launch retail sales.
As of Wednesday, 188 retail marijuana stores are open across the state, according to the latest OCM data.
