Nevada State legalized medical marijuana in the year 2000. However, conventional dispensaries started to open only in August 2015. Since then, Nevada cannabis companies dominated the legal market catering to the state’s medical patients.
Nevada has enticed investors after the state began licensing dispensaries. It is among the few American states allowing profit-oriented medical cannabis facilities to operate. Local cardholders can also make purchases from these clinics.
The recreational market also continues to flourish. Retailers sold almost $200 million worth of cannabis products from July up to December of 2017. Nevada’s revenue was higher compared to Washington DC with $67 million and Colorado with $114 million.
This period was during the first six months of weed sales for legal adult use. The state government collected over $30 million in taxes within that timeframe.
- Nevada cannabis companies gained the upper-hand over other states because of more marijuana products. Majority of the 205 cultivation/production facilities increased their cannabis products more than two times. This significant growth enabled them to meet the state’s huge dispensary sales.
- Nevada made the business of legal cannabis more lucrative. As of July 1, 2017, the weed enterprise boomed overnight after recreational sales resulted in the customer base multiplying 10 times.
- Tax revenues escalated. Nevada’s Department of Taxation earned over $35.9 million from the 15% wholesale tax for recreational and medical grass. It also collected 10% excise tax for recreational marijuana sales July 31 (2017) and January 31 (2018). Wholesale tax revenues go to state as well as local government regulations for this industry.
- Legitimate Nevada cannabis companies provided stiff competition for illegal growers and sellers taking advantage of the black market. Many cannabis customers prefer legal weed from dispensaries because of the obligatory testing benchmarks and childproof bags meaning consumers have greater access to herbal medicines.
What’s Next for the Cannabis Entrepreneurs?
Nevada State now offers prospects to up and coming investors. These business owners expressed their willingness to shop around and wait in acquiring licenses when the price has gone down.
Opportunities remain abundant due to the growing market of medical marijuana patients. Legalization of recreational weed boosts the domestic tourism sector due to the large client base.