New York legalized the sale of cannabis for licensed dispensaries in 2021, presenting positive opportunities for local entrepreneurs like Angelo La Roche. 2024’s sales reached a milestone, but businesses struggle against bureaucratic red tape, high taxes, and competition from illegal shops.
Angelo La Roche: A Case Example
La Roche has a determination to be successful in life, coming from a hardscrabble background where he has seen more than his share of personal losses, including the loss of his parents. When New York legalized cannabis in 2021, it, on paper, was designed for people like La Roche. He grew up poor, Black, and in a community disproportionately affected by the war on drugs. He jumped at the opportunity for entrepreneurship, which the new regulations promised.
He invested everything he had in Green Klub, his cannabis start-up, convinced community boards that the business would not negatively impact the area, hired staff, and found cannabis products for his targeted audience. Now, four short years later, La Roche fears he will lose it all.
Record Sales
The legal cannabis market in New York climbed to an estimated $1 billion in retail sales in 2024, evident by the smells of marijuana smoke emanating from the city’s streets. However, La Roche’s storefront is mainly empty, his license cuffed by red tape, and his landlord may take the storefront back. Not one to hold back, La Roche has made his opinions and rights publicly known.
He recently stated outside a board meeting of New York’s Office of Cannabis Management (OCM) in Manhattan, “Paying lip service to diversity without solving the problems of legalization is not enough. They’re able to [say] that they’ve supported us, opened it up for us, [but] the reality is, they’ve actually made it impossible for many of us.”
New York State Regulations
The regulations came at a time when many people were being detained for marijuana sales. Regulating the cannabis trade allowed new entrepreneurs to make a positive impact and the state to benefit financially from the sales through regulatory fees and taxation. Politicians promised that legal marijuana taxes would be a lucrative source of income and that crime and social ills associated with illegal drug dealing would be reduced.
Some of the promises came to fruition with the OCM approving or conditionally approving more than 5,000 licenses to grow or sell marijuana. There are at least 270 dispensaries open for business, and retail sales reached over $1 billion last year. The sales have also raised over $80 million in tax, fees, and fine revenue. However, the OCM was not given adequate support at the onset to run a smooth licensing program and shut down illegal operators threatening the livelihoods of legal sellers.
The Immediate Future of the New York Cannabis Industry
There is no question that the New York Cannabis regulations have been fraught with problems. Legal dispensaries are even restricted in how they use storefront advertising, making their shops look like glorified graphic design studios. On the contrary, illegal shops cover their windows with flashing neon lights advertising their illicit products.
For the future to improve, the regulation must improve. There are positive signs, however. Over 1,500 illegal locations have been shut down, and more than 71/2 tons of unlicensed products have been seized. This is a positive step in the right direction. What appeared to be a good idea in 2021, and it was, was not thought all the way through. The good news is that the myriad issues were realized relatively quickly, and things can improve soon before successful entrepreneurs like Angelo La Roche lose their livelihoods.
