New York state regulators approved an additional 123 cannabis business permits on Tuesday, marking another step forward for the state’s legal marijuana industry as sales continue to grow rapidly after years of stagnation.
The approval of the new licenses comes alongside a record-breaking $100 million in marijuana sales for August, which included the last few days of July, according to officials from the state’s Office of Cannabis Management (OCM).
With the market gaining momentum after a sluggish start, state officials now anticipate that New York’s regulated marijuana sales will exceed $450 million by the end of 2024, reports MJBizDaily. John Kagia, OCM’s director of policy, emphasized the positive trajectory, stating, “We are cooking with gas,” at a state Cannabis Control Board meeting.
New York legalized recreational marijuana in March 2021, but the market faced significant delays, with the first legal sale not taking place until December 2022. These delays were largely due to lawsuits challenging the state’s equity-focused regulations and competition from a widespread illicit market. However, the worst of the legal hurdles were resolved late last year.
Additionally, the state has been cracking down on unlicensed marijuana retailers, closing 349 illegal stores since May. This crackdown has led to a 50% increase in legal sales in the downstate region, which includes New York City, according to the OCM.
Of the 123 licenses issued on Tuesday, 26 were for retail stores, although only one was awarded to a social equity applicant. Regulators also approved 24 microbusiness permits, allowing license holders to cultivate, process, and sell marijuana.
As of Wednesday, New York now boasts 188 legal marijuana retail stores, a significant increase as the state’s legal market continues to develop.
