27/04/2023
New York is potentially losing out on $2.6 billion in tax revenue over the course of 8 years due to a slow pace of licensing and opening cannabis dispensaries. According to a report by MPG Consulting, the state needs around 900 dispensaries to supply its demand, but only 36 are set to open this year. The delays in licensing are due to capital requirements and inspections, permitting, and hiring processes taking up to 9 months to a year to complete.
MPG Consulting recommends that existing licensed medicinal cannabis operators be allowed access to the recreational market to quickly increase the number of dispensaries. However, some entrepreneurs, businesspeople, and stakeholders have launched a lawsuit alleging that the state should open up licensing to more people than just social equity applicants.