Sales Surge In NY Legal Cannabis Market After Crackdown On Unlicensed Sellers

ALBANY, NY – Sales of legal cannabis have been surging in New York as the state continues its efforts to shut down unlicensed sellers.

According to a news release from Gov. Kathy Hochul, New York’s cannabis sales to date in 2024 have reached $368.4 million, more than doubling last year’s $160 million total sales. Enforcement efforts have pushed the state’s overall retail sales to over $520 million, with sales since May 2024 making up over 43 percent of that total. Licensed retailers report an average increase of 50 percent in sales statewide and 97 percent in New York City.

The increase coincides with “Operation Padlock,” a statewide law enforcement initiative launched to shut down illegal cannabis shops that began in mid-May

The task force, which includes State Police, the Office of Cannabis Management, Department of Tax and Finance, local law enforcement, and over a dozen other state agencies, deployed 150 investigators to inspect, reinspect, padlock, and seize products from illicit operators.

“Thousands of illegal cannabis storefronts across the State have plagued our communities and siphoned business from licensed retailers,” said Gov. Hochul. “I launched the Illicit Cannabis Enforcement Task Force to quickly close these unlicensed shops, and today, more than 1,000 have been shuttered. I look forward to building upon that success to continue our enforcement efforts across New York.”

More than two dozen licensed cannabis retailers have seen a 100% increase in sales since the operation started. Many new customers said they visited legal dispensaries after their usual, unlicensed stores were shut down.

“It’s a really powerful testament to the outcomes we are able to see based on the state’s commitment to padlock these unlicensed dispensaries,” said John Kagia, director of policy for the New York State Office of Cannabis Management.

Gov. Hochul has projected that New York will generate $1.25 billion in tax revenue from cannabis sales within the next six years.

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