Nevada’s green dreams may be short-lived as the states dispensaries are running out of pot, and they don’t have a backup plan.
After dispensaries opened on July 1, fireworks weren’t the only thing lighting up to celebrate good ol’ American freedom.
The state sold $4 million worth of marijuana in the first weekend. A quarter of that went the state.
It seems the problem can be traced back to short-sighted legislation. In the law voted on by Nevadans in November, part of the deal was that marijuana could only be distributed by companies that traditionally distribute alcohol.
The problem is that these companies haven’t yet been approved to distribute marijuana either because of unfinished applications or issues with zoning laws, according to the Reno Journal Gazette.
The idea behind the law was that alcohol companies stood to lose revenue with the introduction of legal marijuana. There may be some truth to that, but the data from states that have legalized marijuana so far are inconclusive.
Colorado actually saw an uptick in alcohol sales following legalization, but sales have fallen since. The Cannabiz Consumer Group estimated that legal marijuana would burn up about 7 percent of alcohol sales nationally.
Other states like Oregon and Washington have shown decreased alcohol sales. But marijuana and alcohol aren’t exactly substitutes. In fact, users of one likely use the other.
Still, people only have so much expendable income for their vices, and when it comes to choosing, it’s a lot easier to veg out at home than spend the night get wasted at the bar.
Nevada thought it would be enough of a problem to introduce a system that doesn’t exist in any other legal marijuana markets.
Retailers tried increasing the price to temper sales, but it looks like the state is still headed for a drought.
The governor even went so far as to declare emergency regulations to license other companies to distribute marijuana. But the regulation is being challenged in court even with only seven alcohol distributors having applied for licenses to distribute marijuana.
Good try, Nevada, but it doesn’t seem alcohol companies were very interested in the olive branch. Luckily, the distributors only have exclusive rights to the business for 18 months. So eventually the problem will sort itself out.
But with the resources put into the fresh industry, thousands of people will have to come up with a new plan if the state doesn’t figure out a solution.
On top of the distribution issues, the state also seems to be having some growing issues as well. Marijuana growers are in the middle of growing their next crop, and some have even sold that once its ready.
Nevada’s issues serve as a warning to future states considering or preparing for legalization. While marijuana will probably be most popular in the months right after legalization, while people want to try out the new goods, making sure you have enough supply is still important.
California is set to go legal in January. But California has been growing the country’s marijuana for years, so unless they have plans to bottleneck the industry, they shouldn’t have any issues.
This article appears in Jul 13-19, 2017.
Interesting paradox on the continuing to the perils of schedule one and limiting interstate trade. ( CALL YOUR CONGRESS PERSON COMPLAIN) Washington has allowed for state to state trade have an abundant supply.
A curious thought how well does a stoner do at slots/craps/cards as apposed to a inebriated player ? I wonder if they pass out vap pens for players ?
Can grandma or the Asian do as well with infused brownies. I bet the buffet lines would be packed no longer free need for increase in size.
Ouch the porno industry would feel a huge impact. the male drunk bravado stiffened a little. Going from yea baby I want some of that, to come on sweetheart sit down and chill, awhile take a toke let’s see if there’s a vibe.
Will Casinos have a no use employment policy? Dealers and pit crew need to be tested ? I can just see the Blackjack dealer slowing down like that will happen. I love craps have done well and real bad too. Play to step up to the able side or rolling dont thinks so. I would rather stay in chill with the babes wine and cheese.
Now that I am thinking of it no pot why go to Vegas ? Yea think there is residual unestimated intended market shifts with legalization. Who is now in competition marketed compulsive behavior of Vegas. Gaming Entertainment Marriage, Indulgence markets are all down. Seems like as America is turning to self medication and the chaff are suffering from it.
So this is the culmination of MPP’s success in Nevada. A huge ” TO BE DETERMINED” (TBD). So now they have a existing state liquor board doing the administration of the market. Like all the other states that have legalized. First quarter sales and estimate projections transient population from gaming hard to estimate. Lets see how this plays out. It will be a lot better than having a state department with it’s own court, unregulated police force with no warrant authority. Like Arizona’s Orwellian prop 205 approach.