How Local Opposition Threatens Long Island's Cannabis Market And What That Means For Investors

New York's adult-use cannabis market is poised to be one of the most robust in the country—but only if local governments allow it to be. While headlines focus on licensing delays and court battles, a quieter yet equally damaging problem continues to stall market growth: local municipalities opting out of legal cannabis retail. And no region illustrates this challenge more clearly than Long Island.

As co-founders of a licensed cannabis dispensary still awaiting local approval, we've seen up close how a vocal minority—often armed with misinformation—can block access to safe, legal cannabis. This is not just a Long Island issue; it's a national and even global challenge. But here, the disconnect is especially striking. Long Island is home to nearly 3 million people, with a mature consumer base and close proximity to New York City. Yet vast portions of Nassau and Suffolk Counties remain cannabis deserts.

The opportunity cost is staggering. According to Newsday, Long Island municipalities brought in nearly $3.5 million in 2024 alone from legal cannabis sales—with the Town of Babylon accounting for over $2.6 million of that total. Babylon's success story underscores what's possible when communities embrace a legal, regulated market. By contrast, towns that continue to opt out are missing out on vital tax revenue, job creation, and new investment that could breathe life into underused commercial spaces.

Some of the opposition we've encountered has felt less like a debate over zoning or public safety, and more like a battle of cultural values. In one recent hearing, a nearby church voiced concerns that echoed long-standing fears about cannabis that have been disproven time and again. We respect all voices in the community, but it's important that policy decisions are based on facts—not outdated stigma, moral panic, or personal belief systems. This is, after all, a legal industry in New York State. It deserves to be treated like one.

There's also a broader shift underway. Countries like Germany, Canada, and Uruguay have already embraced reform. In the U.S., support for cannabis legalization has reached historic highs, with more than 70% of Americans in favor according to Gallup. And yet, despite this global momentum and widespread domestic support, many Long Island towns remain stuck in the past. As of 2024, only 4 out of 13 towns on Long Island have opted in to allow cannabis retail, according to regional zoning data compiled by local attorneys at Forchelli Deegan Terrana LLP.

Opponents often cite concerns about underage use, impaired driving, and declining property values. But multiple studies—and over a decade of real-world data from legal states—show no increase in teen use near dispensaries, no long-term spike in DWIs, and no negative effect on home values. In fact, legal cannabis businesses are among the most tightly regulated in the country.

We believe the real path forward lies in education. The cannabis industry must do more than show up—we have to inform, engage, and build trust with the communities we hope to serve.

For investors and national stakeholders eyeing New York's market, Long Island offers a critical lesson: state-level legalization doesn't guarantee local access. To build a truly functional, scalable cannabis industry, we need public education, local advocacy, and long-term investment in community relationships.

The cannabis conversation is evolving—globally, nationally, and yes, even on Long Island. It's time for local leaders to catch up with their constituents and embrace the reality: legal cannabis is here, and with the right support, it can be a powerful driver of economic and social good.

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