New York State's Legal Cannabis Industry 'In A Precarious Position' Acreage Releases Impact Analysis

Acreage Holdings, Inc. ACRHF ACRDF ACRG ACRG released a New York Illicit Cannabis Market Absorption Analysis, in which it examines the state's current trajectory for achieving key goals outlined in the Marijuana Regulation and Taxation Act and the need to course correct to do so. The report also identifies the potential implications of its current adult-use draft regulations and demonstrates the importance of expanded access to more operators, including registered organizations, to the success and stabilization of New York’s legal cannabis market.

New York cannabis market is projected to be worth $5 - $7 billion, yet limited access to the regulated market is stifling growth and delaying the absorption of the illicit market. Acreage commissioned MPG Consulting, a strategic advisory firm in cannabis and hemp, to analyze the current reality of New York's adult-use market and model where it could be given three very different, but realistic scenarios.

Based on New York’s current adult-use existing and proposed regulations, according to the report:

• Illicit market operators capture $7.2 billion in revenue between 2023 and 2030 due to the lack of legitimate retail outlets;

• New York will see a loss of up to 20,600 direct cannabis and ancillary jobs per year;

• New York will see more than $2.6 billion in state tax revenue lost over eight years;

• New licensees will open during great supply chain uncertainty causing needless operating risks.

“If New Yorkers and New York state lawmakers and regulators want a safe, open, thriving cannabis marketplace, the state must expand access to more operators, including registered organizations,” stated Bryan Murray, executive vice president of government relations, Acreage. “The state tried to initiate an inclusive cannabis market based on restorative justice for those historically impacted by the War on Drugs; unfortunately, the delayed licensing rollout put the state’s legal industry in a precarious position as illicit actors fill the vacuum and serve consumers. New York is expected to be one of the largest cannabis markets in the U.S. There is room for all players, and New York has a full bench of players ready to play the game. Why won’t they let us help them win?”

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Photo: Benzinga edit with photos by King of Hearts on Wikimedia Commons and squarefrog on Pixabay