Illinois Cannabis Sales Hit $140 Million in July, Boosted by Out-of-State Buyers; Governor Pritzker Celebrates Economic Impact

CHICAGO — Cannabis sales in Illinois surged to $140 million in July, marking the highest total for 2023 and the second-largest monthly sum since legalization began in 2020. The figures, released Thursday by the state’s Department of Financial and Professional Regulation (DFPR), revealed that 3.5 million cannabis products were sold during the month.

The boost in sales was significantly aided by out-of-state visitors, who contributed nearly $35 million to the total. Almost $105 million was spent by Illinois residents at over 100 cannabis shops across the state.

Wisconsin residents played a substantial role in these numbers, given that all forms of marijuana remain illegal in that state. In March, Illinois collected $36 million in tax revenue from Wisconsin residents alone. The recent launch of Minnesota’s retail weed market leaves Wisconsin as the only state in the Midwest with total prohibition on cannabis, fueling a canna-tourism trend.

Governor Pritzker’s Role and Impact

Illinois Governor J.B. Pritzker has been a driving force behind the advancement of the state’s cannabis industry. He actively promotes its growth and touts the positive impacts on the economy and social equity.

Last week, Gov. Pritzker signed a Senate Bill aimed at reintegrating people released from incarceration, along with overseeing thousands of expungements.

“I have expunged more than 800,000 low-level cannabis arrest records on top of pardoning an additional 26,000 people who committed nonviolent offenses,” Pritzker said, highlighting the state’s efforts to redress the impact of the war on drugs. “Illinois has reduced our prison population by more than 26% in the last four years. We have invested hundreds of millions of dollars to lift up communities most harmed by the failed war on drugs.”

Since signing the cannabis legalization bill two years ago, Illinois’ approach has been lauded as the “most equity-centric” effort in the nation.

Economic Benefits and Job Creation

In addition to social justice initiatives, the legalization of cannabis has played a substantial role in the Illinois economy. Gov. Pritzker emphasized that the legal cannabis market has created over 30,000 jobs in the state in just two years.

“Illinois is home to the country’s most diverse cannabis industry and some of the largest companies,” Pritzker noted. The success of companies like Cresco Labs Inc, Verano Holdings Corp., Green Thumb Industries, and privately held PharmaCann further illustrates the thriving market.

Illinois achieved cannabis sales of $1.5 billion in 2022, and the current year seems poised to meet or exceed that record.

A Model for the Nation?

With a booming market, significant contributions to social equity, and tangible economic benefits, Illinois’ approach to cannabis legalization stands out as a potential model for other states.

The July sales figures underline the sustained growth of the industry, even as neighboring states modify their own policies. However, the reliance on out-of-state buyers, particularly from Wisconsin, also raises questions about the sustainability of this growth if legal frameworks change in neighboring jurisdictions.

The success in Illinois offers a robust argument for the positive impacts that a carefully managed and equity-focused legalization effort can provide. As other states consider similar moves, the Illinois experience provides both an example to follow and a source of data to inform future decisions. The current trajectory suggests that Illinois’ investment in the cannabis industry is likely to continue to yield dividends, both economically and socially, for the foreseeable future.