American elections: the big winner could be... cannabis

With the cannabis legalization Since it is on the ballot in nine states, the big winner in tomorrow’s election on November 8 could be the legal cannabis industry.

The citizens of 5 states (Arizona, California, Maine, Massachusetts, and Nevada) will decide whether or not to legalize recreational cannabis. Medical cannabis will be proposed in the states of Arkansas, Florida, Montana, and North Dakota.

The latest polls on legalization in these states are in favor of California and Florida, but the votes could also lead to a change in the law in the other three states, as Americans’ attitudes toward cannabis are changing rapidly, with today 57% of the population in favor of legalizing cannabis.

Tax revenue exceeds expectations

It is obviously too early to assess the full impact of cannabis legalization in the four states that have already taken the plunge. The the latest report from the Drug Policy Alliance concludes that «so far, so good» in Alaska, Colorado, Oregon, Washington State, and Washington, D.C. Cannabis-related arrests are on the decline, and traffic accidents have remained stable.

Nationwide, legal sales of cannabis (or cannabis-related products) rose from 4.6 to 5.7 billion dollars between 2014 and 2015. Projections ArcView Forecasts for 2020 estimate that sales will exceed 22 billion. Other sources put the figure at 35 billion.

The legal cannabis industry has also created thousands of jobs across the country, largely due to the transition from an illicit economy to a legal one.

The taxes generated by cannabis sales—even though they will never be a complete solution to a state’s budget problems—have far exceeded initial estimates. And that is also what sets proponents of legalization apart. They are calling for their industry to be taxed—something most traditional businesses seek to minimize. It is also a way to legitimize their call for legalization and make it acceptable in the eyes of the government and its citizens.

California: Where Land Meets Sea

All eyes are on the Golden State, where voters will most likely vote in favor of Proposition 64, Adult Use of Marijuana Act. Medical cannabis is already legal there. Proposition 64 would allow Californians over the age of 21 to grow their own cannabis at home and would allow municipalities to authorize the sale of recreational cannabis.

California is often referred to as a “domino state.” If legalization passes, the federal government will no longer be able to ignore the issue, and other U.S. states could also begin to call for legalization, one by one, until cannabis is legalized at the federal level.

A business that's still done entirely in cash

The U.S. Congress will certainly not address this issue anytime soon. Cannabis industry leaders, however, hope that lawmakers will address the banking issue. It is currently virtually impossible for a dispensary to access the banking system due to the federal ban on cannabis.

Running a business that operates entirely with cash creates serious security issues for cannabis and accessory stores, including the constant threat of being robbed. It also makes it harder to pay employees and taxes.

Tune in tomorrow to find out, first and foremost, the highly anticipated results of the U.S. presidential election—both regarding which candidate will be elected and each state’s decisions on cannabis.