Denver's Marijuana Revenue Drops 34%, But Cannabis Crime Rates Remain Low

Denver's latest licensing bulletin reveals a sharp decline in marijuana-related revenue.

According to the report, the city generated $48.1 million from marijuana taxes and licensing fees in 2023, a significant drop from the $72.6 million peak in 2021. This decrease is indicative of a broader downturn facing the legal cannabis industry, exacerbated by oversupply and regulatory pressures.

See Also: Denver: Veteran Cannabis City Speaks Out On Rescheduling, ‘We Have A Lot Of Expertise To Offer’

The allocation of this revenue reflects Denver’s strategic use of cannabis funds to address critical social issues. In 2023, $7.95 million was directed towards services for the homeless, $7.53 million was allocated for affordable housing and $3.32 million supported youth education programs.

Impact On Crime Rates And Industry Survival

As per FOX31, Mason Tvert, a prominent industry spokesperson and leader in marijuana legalization efforts, said: "It is a very difficult time for the legal cannabis industry."

Tvert also pointed to the necessity of finding solutions to excessive supply and urging support for the industry. "They want to pay taxes and they want to be regulated and treated like other businesses, but they cannot survive if we continue to overtax and overregulate."

The report also touches on the shifting landscape of marijuana-related crime in Denver. Marijuana-related crime constituted a mere 0.2% of total crime in 2023, a figure that the Denver Excise and Licenses spokesperson Eric Escudero pointed out as evidence of the city's effective regulation.

"We successfully prevented that prediction that crime would skyrocket," Escudero said, attributing the success to Denver's pioneering regulatory framework, which has been emulated by cities nationwide.

Meanwhile, the Denver Police Department has reallocated its marijuana task force to address the rising fentanyl crisis, signaling a shift in focus as marijuana-related issues decline in priority.

DPD Lt. Ryan Harris noted, in dialogue with FOX31: "You see the reduction in marijuana seizures over the last decade, so I don't think this is a surprising number. This was where these numbers were trending towards."

The report also indicates a significant drop in the number of medical marijuana dispensaries over the past eight years. Additionally, unlawful use and display of marijuana surged by 242% in 2023 compared to the previous year, with 26 citations issued.

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