Week In Review: California State Fair Introduces Cannabis Sales & Consumption Areas; Cannabis Legalization Yields >$20 Billion in Tax Revenue; New York Task Force Shuts Down Over 100 Illegal Cannabis Dispensaries in Three Weeks

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets with some states doing amazingly well. And some, well…they’re not doing so well (hello New York). Let’s get to it!

Cannabis Industry Highlights

#1 California State Fair Introduces Cannabis Sales and Consumption Area: This year’s California State Fair, beginning July 12 in Sacramento, will feature cannabis sales and a designated consumption area, signaling the growing acceptance of cannabis in mainstream America. This marks the first time in the fair’s 170-year history that such activities are permitted.

#2 Cannabis Legalization Yields Over $20 Billion in Tax Revenue:  The wave of cannabis legalization across the United States is creating a significant economic impact, with legalized states collectively generating over $20 billion in tax revenue from adult-use cannabis sales. This milestone not only underscores the acceptance of cannabis but also highlights its potential as a substantial revenue source for funding state services and programs.

#3 New York Task Force Shuts Down Over 100 Illegal Cannabis Dispensaries in Three Weeks: Since its inception three weeks ago, New York’s task force dedicated to shutting down illegal cannabis dispensaries has closed 114 storefronts. The enforcement actions, which have led to the seizure of more than $29 million worth of products, mark a significant step in the state’s efforts to regulate the cannabis market.

#4 Colorado Survey Shows Significant Drop in Teen Cannabis Use: The latest Healthy Kids Colorado Survey reveals a notable decline in cannabis use among high school students, with a 37% decrease in reported use over the past month from 2013 to 2023. Additionally, the survey found that the number of teens who found cannabis “easy” to obtain dropped by 27% during the same period.

#5 Florida’s legalization ballot initiative broke fundraising records by raising over $40 million, with Smart & Safe Florida leading the fundraising effort, and Trulieve providing most of the donations to this group. Despite recent strong polling showing the public support for the initiative is there, it faces opposition from Florida’s Republican Party and Republican Governor Ron DeSantis, who have criticized the measure as too radical.

#6. Brazil’s Supreme Court decriminalized cannabis: click here to find our coverage of Brazil’s latest moves with cannabis.

Psychedelic Sector Update

#1 Dutch State Committee Report on MDMA Highlights Public Health and Therapeutic Uses: On June 6, 2024, the Dutch State Committee MDMA presented its report titled “MDMA: Beyond Ecstasy” to the Dutch Minister of Medical Care. The six-member committee, chaired by Brigit Toebes and co-chaired by Wim van den Brink, included experts in international law, addiction, psychiatry, criminal law, emergency medicine, and prevention.

#2 Arizona Governor Vetoes Psilocybin Treatment Centers Bill: Arizona Governor Katie Hobbs vetoed a bill on June 18 that would have permitted the use of psilocybin in designated treatment centers. The vetoed House Bill 1570 proposed $5 million in annual funding for psilocybin therapy, overseen by the Department of Human Services, which would have regulated therapy centers and facilitators. The bill also sought to establish the Arizona Psilocybin Advisory Board to develop the program and conduct studies.

To have all our content delivered right to your inbox, and never miss a beat, subscribe to our newsletter at highlycapitalized.com  Stay tuned to Highly Capitalized for more updates as the cannabis and psychedelic industries continue to shape the future at the intersection of wellness and innovation. Subscribe to our newsletter and follow us on LinkedIn.