New York closes more than 1,000 illegal cannabis stores

New York City and State have announced that they have closed more than 1,000 illegal cannabis retailers thanks to the concerted efforts of several agencies and task forces.

Authorities had estimated that there were some 2,900 unlicensed vendors in New York City, compared with around 60 in the United States. dispensaries currently operating in the city and 150 statewide.

New York's cannabis grey market

Governor Kathy Hochul, Mayor Eric Adams and other New York City officials announced the closure of 779 illegal stores in New York City alone, while the New York State Illicit Cannabis Enforcement Task Force closed another 230 stores across the state. This brings the total number of unlicensed cannabis retailers that have closed to over 1,000.

Governor Hochul explained the importance of these actions, saying, «Earlier this year, I enacted new enforcement powers to quickly and permanently shut down the thousands of illegal cannabis retailers across New York who are selling potentially dangerous products - many of which target children and teens - and diverting sales away from hard-working, licensed store owners.».

The crackdown on illegal cannabis activities should have a profound impact on the legal market. Visit legal cannabis stores in New York City have seen their sales increase by an average of 72%, with a third reporting an increase in sales of over 100% since the start of enforcement measures.

Governor Hochul said, «I'm pleased to join Mayor Adams and other officials in celebrating an important milestone and honoring the law enforcement teams who have closed more than 1,000 unlicensed stores across the state, bringing us one step closer to our goal of creating the strongest and fairest cannabis industry in the country.».

Strengthening enforcement powers

In April, Governor Hochul presented new initiatives as part of the budget adopted to put an end to illicit cannabis-related activities. and protect the legal market. These initiatives have given the’Office of Cannabis Management (CMOs) and local municipalities greater powers to act against illicit stores and those who enable them. These initiatives constitute the most robust set of policies adopted to date to combat the illicit cannabis market.

The Cannabis Enforcement Task Force, launched on May 21, 2023, is a key component of these efforts. Headed by the First Deputy Superintendent of the State Police, it coordinates multi-agency personnel to comprehensively combat illegal cannabis activities.

The task force's approach is to work with landlords to evict illegal dispensaries and penalize those who fail to take action against illegally operating tenants.

Since its inception, the Task Force has padlocked 230 illegal cannabis stores, and over 3 tons of illicit product worth $22 million has been seized. Total illicit product seized in the state since May 2023 amounts to over 12 tons, valued at over $110 million.

Felicia A.B. Reid, acting executive director of the CMO, praised the Taskforce, saying, «The Taskforce has played a crucial role in cracking down on illicit cannabis operators. Every day, OCM and its partners across the state work hard to ensure a fair, safer and equitable marketplace for all, supporting New York's legal cannabis businesses.».

Testimonials from legal business owners

Legal cannabis business owners have expressed their support for the enforcement measures and the changes they have brought about.

Osbert Orduña, owner of The Cannabis Place, said: «When I opened my dispensary, we were surrounded by illegal cannabis stores that took customers from those of us who had followed procedure and done things properly. Earlier this year, I voiced my support for Governor Hochul to shut down these stores, and today I'm proud to say that she did what was necessary. Today, our community has access to legal cannabis, my sales have increased by 105 % and I'm in the process of hiring staff to meet the growing demand.».

Similarly, Leeann Mata, owner of Matawana, highlighted the dramatic improvements in his business: «We've seen dramatic changes in our business since Governor Hochul took action to close down illegal stores. Thanks to Governor Hochul, visits to my store have increased by 3,000% in the last 60 days, and this month I've sold around 500% more products than in the months before enforcement began.».