For the cannabis industry to really take off, governments need to give it room to thrive…
Some kind of legal marijuana is available to purchase right now throughout most of North America, but the majority of cannabis sales are still taking place underground.
My friends and colleagues at the National Institute for Cannabis Investors are right to emphasize this point because it shows the massive profit opportunity that is ahead as illicit sales turn into legal sales and, ultimately, profits for publicly traded companies.
In 2018, New Frontier Data projected that there was over $86 billion in cannabis sales in North America. As a reference point, only $10.8 billion of that was legal.
To make a dent in the illegal markets, you need two things. One is education. When more people learn about why it’s better to turn to safe, regulated, and legal markets, you send cannabis consumers to dispensaries instead of dark alleys.
An Open Letter to Regulators
With about seven out of every eight dollars spent on marijuana in North America going to illegal sources, it’s clear that consumers are still turning to the illicit markets for some reason.
I would even go so far as to say that, beyond the traditional distinction between total prohibition, legalization for medical use, and legalization for recreational use, there should be another distinction between broad legalization and legalization that is so restricted that it holds back the industry from becoming anything more than a novelty.
I’m talking about giving cannabis consumers the options they want when legalization rolls out and taxing cannabis products fairly so there is no reason to ever turn to the black market.
For example, medical patients in Florida originally were not allowed to buy smokeable cannabis. If you’re terminally ill and find that’s the best way to consume medicine, then you should have had the right to do that the minute Florida legalized medical marijuana.
If you wanted to vape in Canada, you should have been able to do that when full legalization went into effect in October 2018.
Fortunately, there are signs regulators and politicians are finally getting the message.
The Light at the End of the Tunnel
For example, in Oklahoma, doctors can prescribe cannabis for any medical reason.
And I think that Michigan is setting a good example for other states looking at recreational legalization. Not only is their cannabis excise tax limited to 10%, but their regulators have worked hard to support the industry in its early growth phase.
This is especially important because, according to The Wall Street Journal, politicians in New York are considering taking the initiative on legalization again.
Over the course of 2020, there are a lot of states that are looking at potentially relaxing their cannabis laws.
In fact, with 32 states approving medical cannabis and 70 cannabis legalization bills already in Congress, full federal legalization could be just around the corner.
And before that happens, you’re going to want to claim your stake in this $10.8 billion industry. Learn how with the only comprehensive guide to cannabis profit potential in the world.
Secure your copy of the 2020 Pot Profits Roadmap now – before it’s too late.
Cheers and good investing,
Michael A. Robinson
11 responses to “Legalization Done Right Is the Key to the Cannabis Industry”
February 05 2020