New York’s illegal cannabis market is booming! but do you know why?

New York will launch its legal recreational cannabis market in the next few weeks, but all of that could be hampered by the thriving illegal market in the sector.

PharmaCann, an Illinois-based multi-state operator, recently said that New York’s cannabis regulators need to find a way to eliminate growing illegal activity in the state’s cannabis ecosystem. As one of the holders of New York’s lucrative vertical medical cannabis licenses, the company says the state must make every effort to crack down on anyone, private or public, who directs the control of illegal activities.

The state regulator reportedly refrained from attacking a few individuals in hopes of persuading them to get involved in the regulated industry. But the current rampant state of illegal cannabis cultivation and sale in New York is another reason to attack these people first.

Every legal operator wants the same thing

The illicit marijuana market has significantly impacted New York’s existing medical cannabis sector. Legal operators have suffered losses a few times because the market has been skewed in favor of illegal operators.

PharmaCann’s Senior Vice President of Regulatory and Public Affairs, Jeremy Unruh, commented that the thriving illicit cannabis market is undermining the General Assembly’s goal of creating an impartial, for-profit, legal market. In his email to MJBizDaily, he noted that stakeholders have begun to understand the need to allocate resources to eliminate illegal practices in the ecosystem. He pointed out that this act does not contradict the state’s decriminalization goals.

Ghitelman, a top figure in the office of cannabis management, repeated the same thing. In his email, he said New York State is committed to building an unrivaled legal, regulated market for adult use to ensure all products for sale are tested and safe for consumption. He also noted that the program aims to provide equal opportunities for members of communities disadvantaged by the extreme criminalization of the drug war. Ghitelman stressed that the program’s goal would be limited by the extensive illegal operations in the state.

Illegal cannabis deals in New York

Since the days when cannabis was universally banned, every state has had a fraction of illegal cannabis operations — which law enforcement did their “best” to curb. However, these operations are still ongoing, even in the face of regulations and newer policies that allow the drug’s use and sale.

New York’s illegal marijuana operations operate from unsightly locations such as small storefronts, stands, and consumption lounges.

Some NY legal cannabis businesses are required to illegally gift cannabis to customers. This practice began shortly after these companies discovered a loophole in the new legislation. It is a common occurrence in new and potential markets for adult use, including Vermont.

These companies claim to repay customers’ patronage with cannabis products. For example, if you buy a t-shirt or club membership card from a company, the company will include a cannabis gift in the package. Some marijuana-related businesses also do this when customers pay for marijuana delivery.

State regulators have vehemently condemned the crime. They specifically said that these types of transactions are considered illegal under the Marijuana Regulation and Taxation Act (MRTA). However, these unlawful practices continue to increase.

A slew of New York residents have alerted law enforcement to the numerous illegal operators who grow and sell cannabis flower and other derivative products. The body of anecdotal evidence of this effect continues to grow each week as the state takes passive steps to address the problem.

One concerned party, DiPisa, says more and more illegal outlets are opening with each warning. Some will replace closed stores while some will be extensions of existing stores. DiPisa added that her confidence was bolstered by the New York government’s inaction to prosecute the guilty operators.

The new legacy operators feel comfortable enough to pull off these illicit sales and/or cultivations because they see a very low risk, high reward opportunity.

Even in broad daylight.

One of the employees of the MMJ operator announced that he saw some of these Black Marker agents promoting their products in broad daylight in and around Washington Square Park. The unnamed manager added that these people set up small tables at various locations around the park.

Despite the sensitive nature of the issue, as well as the illegal status of these practices, the executive said these black market vendors openly displayed the various prices of the products. On a table they saw an ounce of weed priced between $30 and $40. Pre-rolls were $15, while a 100mg bag of cannabis gummies was $30.

The executive said the vendors are more than confident in their operations. Some of these people gave business cards to potential customers who arranged for home delivery.

Washington Square Park’s weed culture can be traced back several decades, so it might be a bit excusable if it were limited to just that area. However, similar table stands and setups can now be found in discreet, unexpected places around town.

Scott Mazza, founder of Vitality CBD, commented that at least 10 of these facilities have sprung up in upstate Buffalo. According to Mazza, these storefronts appear everywhere; Some even have signs above their shops.

Mazza, who plans to be part of the new recreational cannabis market, says it’s overly concerning that the illicit cannabis market is thriving in the different parts of the city where they’ve been set up. He says if this continues, dozens of potential legal operators in the recreational market will find it much harder to thrive.

bottom line

It’s one thing to make something illegal under a section of the law and another thing to make sure the law is enforced. The inaction of New York’s cannabis regulators in enforcing the law is disappointing. Without someone taking vigorous action to curb this activity, it would continue to spiral out of control.

NEW YORK RECREATIONAL CANNABIS, READ MORE…

WILL NEW YORK BECOME A CANNABIS KING PEAK ON THE EAST COAST?

OR..

WHEN WILL NEW YORK START SELLING RECREATIONAL WEED?