Legal Cannabis Industry Is 'Bleeding To Death' In Oklahoma, Gov Suspects Thousands Of Illicit Operators

The Oklahoma Bureau of Narcotics and Dangerous Drugs (OBN) suspects there are around 2,000 potentially illegal medical marijuana licenses in the state.

Agency spokesman, Mark Woodward said the licenses could have been obtained by fraud or are being used to cover illegal activities such as selling marijuana on the black market, reported Tulsa World.

“We’ve got close to 2,000 under investigation,” Woodward said. “We’re working with our partners to identify the criminal networks involved.”

He added that law enforcement is monitoring around 200 cannabis farms and is seeking to pinpoint the criminals behind them.

Though a recent incident where four people were killed on a cannabis farm in  Kingfisher County had nothing to do with these licenses, Woodward said.

Legal Industry Seriously Affected

“Something not talked about much is that the legitimate (medical marijuana) industry is bleeding to death” because of the illicit operations, Woodward stated.

This is not the first time the issue has been brought to the public's attention. At the end of December, the agency estimated that Oklahoma has become the largest source of illegal marijuana in the country.

“It’s not always clear what we should be looking for,” Logan County Sheriff’s Deputy Chris Tillman said at the time.

According to state officials, unlicensed or improperly licensed grey market operations are rampant. “You don’t even have enough dispensaries in the state of Oklahoma to dispense as much marijuana as we’re producing,” said Donnie Anderson, director of the OBN.

Oklahoma legalized medical marijuana in 2018 and that included commercial cultivation. Shortly after, hundreds of growers flocked to the state, attracted by affordable land and licenses and loose regulations, according to The Wall Street Journal Market.

Oklahoma has already issued licenses to some 7,000 growers and 2,600 dispensaries. Although this past May, Gov. Kevin Stitt signed a measure putting a two-year hold on the issuing of new medical marijuana cultivation, dispensary and processing licenses. The moratorium began on August 1, 2022 and will be in effect until August 2024.

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