AGENCY TESTIMONY
Challenges in pinpointing future cannabis market size
2:18:48
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46 sec
The IBO outlines several challenges in accurately predicting the future size of the cannabis market in New York City.
- New York's unique licensing requirements have resulted in a slower rollout of the legal market compared to other states
- The presence of unlicensed dispensaries has slowed growth of cannabis tax revenue
- Consumer preferences may continue to favor unlicensed sellers even after legal dispensaries become more widespread
- IBO expects cannabis tax revenue collection to increase as more licensed dispensaries open and unlicensed stores close
Alaina Turnquist
2:18:48
It is difficult to pinpoint a future market size for several reasons.
2:18:52
New York state's unique requirements for retail licenses have resulted in a slower rollout of the legal market than in most other states.
2:18:59
The presence of unlicensed dispensaries has also slowed growth of cannabis revenue because any sales made at these stores are obviously untaxed.
2:19:08
Even if the city is successful in closing all unlicensed cannabis retail operations, consumers may still choose to continue patronizing unlicensed sellers for example, those in the legacy legacy industry rather than purchase from cannabis state license dispensaries.
2:19:25
IBO expects that as more licensed dispensaries open across the city, More unlicensed stores close, the pace of cannabis tax revenue collection will increase.
