New York Shuts Down Over 1,000 Illegal Cannabis Stores, Boosting Legal Sales By 72%

New York Governor Kathy Hochul and NYC Mayor Eric Adams and other key city officials, announced that more than 1,000 illicit cannabis stores have been shut down across the state.

This figure includes 779 illegal stores padlocked in New York City and an additional 230 closures statewide, as part of an aggressive initiative to curb the unregulated market.

See Also: NYC Mayor Adams On The Weed Warpath: $6M In Fines, 75 Closures, 4000 Illicit Shop Violations In First Week Of ‘Operation Padlock To Protect’

Governor Hochul’s new enforcement powers, enacted through the FY25 Budget have bolstered the state's ability to target illegal cannabis operations. The crackdown aims to protect consumers from potentially dangerous products and preserve the revenue and market share of licensed, legal cannabis retailers.

"Earlier this year, I enacted new enforcement powers to quickly and permanently close the thousands of illegal cannabis retailers across New York selling potentially dangerous products — many of which are marketed to children and teens — and siphoning sales from hard-working, licensed store owners,” Hochul said.

“I am pleased to join Mayor Adams and other officials to celebrate a milestone and recognize the enforcement teams who shut down more than 1,000 unlicensed stores statewide, bringing us closer to our goal of building the strongest, most equitable cannabis industry in the nation," she added.

Coordinated Task Force Efforts

The New York State Cannabis Enforcement Task Force, launched on May 21, plays a pivotal role in this initiative. Led by the State Police First Deputy Superintendent, the Task Force is a collaborative effort involving the police, the Office of Cannabis Management (OCM) and other state agencies. The Task Force not only targets illicit dispensaries but also works with landlords to evict illegal tenants.

As of late July, the Task Force’s efforts have resulted in the closure of 230 illegal weed shops and the seizure of over 6,000 pounds of illicit products, valued at approximately $22 million. This brings the statewide total of seized cannabis products since May 2023 to more than 25,000 pounds, worth over $110 million.

Impact On Legal Marijuana Retailers

The crackdown has had a noticeable impact on legal sales. In New York City alone, legal cannabis retailers have reported a dramatic 72% increase in sales over the past ten weeks. Some stores have experienced even more significant growth.

"When I opened my dispensary, we were surrounded by illegal cannabis shops that were taking business away from those of us who went through the process and did things the right way,” said Osbert Orduña, owner of The Cannabis Place. “I stood with Governor Hochul earlier this year to express my support for shutting these shops down, and today, I’m proud to say she got the job done. Now, our community has access to legal cannabis, my sales are up 105 percent, and I’m hiring new staff to meet the increased demand."

Leeann Mata, owner of Matawana shared a similar experience. "The visits to my shop have increased by 3,000 percent in the past 60 days, and this month, I’ve sold about 500 percent more product than in months before enforcement began," she said.

Read Next: New Yorkers In A Bind As Top-Shelf Cannabis Supply Falls Short, Could Home Cultivation Help?

Photo courtesy of NYC Mayor's office. Police seize illegal cannabis in raid.