FOREX INVESTORS BUZZ Nevada Marijuana State It’s only been just over a week since Nevada legalized recreational marijuana, and the state is already close to declaring a state of emergency. No, this isn’t the result of “reefer madness”-inspired crime waves or the collapse of society as we know it since the legalization of marijuana. Instead what we have here is a very s uccessful weed roll-out in the state; so successful, in fact, that the laws are holding the Nevada marijuana economy back.
Let me explain.
There are 47 licensed retail marijuana stores, and they are quickly running out of stock. Marijuana, to no one’s surprise, is a hit. The drug has been selling fast ever since it became legal at the beginning of July.
One of the solutions to the marijuana bind that Nevada currently finds itself in is a “statement of emergency” allowing state officials to consider adopting an emergency regulation that would help alleviate the shortage. This move was endorsed by Governor Brian Sandoval. (Source: “Nevada dispensaries running out of marijuana; governor steps in,” Reno Gazette-Journal, July 7, 2017.)
The move would relieve the pressure on the Nevada marijuana business. And that’s exactly what the state wants, as tax revenue has seen quite the uptick since the implementation of the marijuana laws (to no one’s surprise).
This is important for marijuana stocks for a number of reasons, not the least of which is that the way marijuana laws are crafted and shaped will mean a lot for the future of the business. This is because more states are likely to adopt regulations on the drug and either follow in each other’s footsteps or at the very least try to avoid the same mistakes.
Consider also that, in spite of the legal hiccup that Nevada marijuana has currently run into, things are still looking very bright for the state. The Nevada Dispensary Association earlier this week estimated that dispensaries earned about $3.0 million in sales. As a result, the state profited about $1.0 million in tax revenue between July 1 and 4. That’s $1.0 million extra in tax revenue in three short days. Those types of numbers will go a long way towards convincing both voters and politicians alike that legalization is a viable option.
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