New York Governor Touts State’s ‘Smokin’ Hot Marijuana Sales, With ‘All-Time High’ Of Half A Billion Dollars In Purchases

New York’s governor is touting the state’s “smokin’ hot” marijuana sales numbers as the market reaches an “all-time high” of over half a billion dollars in legal cannabis purchases since adult-use retailers launched in late 2022.

At a meeting of the state’s Cannabis Advisory Board on Tuesday, Office of Cannabis Management (OCM) Policy Director John Kagia gave an update on cannabis sales, noting that New York has seen about $370 million in purchases so far this year. Combined with last year’s total of about $160 million, that brings the net sum to roughly $530 million since the state’s market launched in December 2022.

“Smokin’ hot is right!” Gov. Kathy Hochul (D) said on Thursday, referring to a New York Post article on the sales figure.

“Thanks to our efforts to shut down illicit storefronts and support our legal dispensaries,” she said. “New York’s legal cannabis industry is reaching an all-time high—surpassing $500 million in sales!”

Smokin’ hot is right!

Thanks to our efforts to shut down illicit storefronts and support our legal dispensaries, New York’s legal cannabis industry is reaching an all-time high — surpassing $500 million in sales! https://t.co/7j9C3d2psA

— Governor Kathy Hochul (@GovKathyHochul) August 22, 2024

Kagia said at Tuesday’s meeting that “the pace at which our monthly sales are growing has been really exciting,” noting that in June and July alone, New York marijuana businesses saw approximately $140 million in revenue.

“The the fact that each month we’ve seen kind of these sales continue to grow by leaps and bounds have been a heartening sign of the continued transition we see of consumers into the legal market,” he said.

The governor and regulators are attributing this growth, at least in part, to their efforts to stamp out illicit operators and expand the licensed marketplace. While officials have conceded that the initial rollout was bumpy, with licensing delays amid litigation, they’re enthusiastic about the progress they’ve made so far this year.

Hochul said in June that the state’s escalated enforcement actions against illicit marijuana shops is resulting in a significant increase in legal sales at licensed retailers.

The governor made the comments amid criticism from equity-focused activists over what they see as a “corporate takeover” of the cannabis market, citing reporting about the administration dismissing concerns from state officials about a “predatory” private equity loan deal the state approved to provide funding for startup cannabis retailers.

Certain advocates say Hochul has “falsely” blamed the legalization law itself for the state’s troubles with the illicit market, without taking responsibility for the administration’s role. To that end, there has been criticism of the governor’s ousting of Chris Alexander as executive director of OCM this year.

In an attempt to rein in unlicensed sales, the governor in February called on big tech companies such as Google and Meta to “do the right thing” by taking steps to stop promoting illicit marijuana shops, which have proliferated across the state.

Meanwhile, New York officials are rolling out a broad plan to encourage environmental sustainability and set energy use standards within the state’s legal marijuana industry. It’s part of regulators’ broader goal of promoting economic, environmental and social sustainability in the emerging sector.

In June, state regulators also formally approved rules to allow adults 21 and older to grow their own cannabis plants for personal use.

A top New York lawmaker also introduced a bill in June to legalize psilocybin for adults, provided they obtain a permit after undergoing a health screening and educational course.

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