Legal Cannabis Revenue Set To Sky-Rocket As Weedmaps Unveils Plan To Drop Black Market Dealers
In case you haven’t heard – Weedmaps recently announced that they’ll begin dropping black market dealers from their wildly popular platform. Black market marijuana dealers have been the bane of the legal cannabis industry and are blamed for the lower-than-estimated revenue generated in states that allow medicinal or recreational marijuana.
If you’re looking for a cannabis business for sale, you should use this information to position yourself wisely.
Join us as we take a look at what this means for legal cannabis business owners, and how the legal marijuana industry is poised for increased growth.
What This Means For Cannabis Business Owners
This new development of Weedmaps barring illegal vendors from operating on their platform is a significant positive signal for cannabis investors. It means that customers are more than likely going to spend their money at legal marijuana dispensaries, rather than from black market options that skirt local laws.
Weedmaps has prospered for years by allowing anyone that could afford their high fees to place their advertisements on their platform. The primary reason why Weedsmapps hasn’t forced black market dealers from their site is that they’ve fattened their pockets with this practice.
Before this groundbreaking announcement, thousands of cannabis delivery services could be found near you with incredible ease. Menus, prices, and specials were all found on the Weedmaps platform, which made it a breeding ground for the black market.
The fact that Weedmaps has finally complied to disallow black market dealers from operating on its platform comes as a major win for marijuana business owners. For years, business owners have filed lawsuits against Weedmaps by claiming that Weedmaps is harming their business.
The fact that the marijuana giant Weedmaps has been forced to comply shows the growing strength of the legal cannabis industry. No longer are cannabis regulators and business owners alike waiting for companies like Weedmaps to put an end to black market cannabis sales.
It appears that Weedmaps has bowed to pressure only because it’s ready to announce a new program that’s geared towards securing marijuana licenses for entrepreneurs. This sub-announcement acts as a secondary signal that there’s a soon-to-be high demand for legal marijuana licenses.
Upcoming Laws That Will Benefit Marijuana Business Owners
If you’re ready to invest in or buy a licensed grow facility or marijuana dispensary, then there’s no better time than now. This moment is the beginning of a growing trend that is forcing black market dealers out of the way to make room for licensed marijuana operators. Let’s take a look at what upcoming methods and laws are being implemented to make legal cannabis services more profitable.
Track and Trace
Track and trace is seen as the ultimate black market killer. This is because once each state requires marijuana companies to comply under the track and trace law – each and every product will be traceable wherever it goes. Regulators can see the origin of any cannabis product and where it’s traveled, which makes it easy to guarantee the authenticity of the product.
Additionally, law enforcement can also easily spot black market marijuana products if they can’t be traced to a legal origin. Once this occurs, the illegal cannabis is seized and taken off the market.
This ingenious method is the future of cannabis policing, which will ensure that legal cannabis is bought and sold through authorized vendors.
Once you have a marijuana license for medicinal or recreational sales, you’ll soon be required by each state to verify that your cannabis products are tested. This means each marijuana product will need to be tested for cannabinoid content, residual chemical content, and harmful bacteria.
By requiring enhanced testing, it’ll be far more difficult for black market dealers to keep up due to increased costs. Although this is an added cost for legal vendors, there will be increased demand as black market dealers fall from sight.
Following in Canada’s footsteps, licensed cannabis producers will need to ensure that their products follow packaging requirements. The list is extensive, but the main point is to make cannabis products far more professional. Each package will need to show ingredients, warnings, contact information, and THC/CBD content.
Black market dealers have stayed ahead of the curve by offering marijuana edibles with incredibly high doses. In some instances, you could find edibles that ranged in the 1,000mg THC category. Now, regulators plan on allowing a 10mg THC limit per edible. These requirements will only help in stemming the flow of black-market marijuana dealers.
Rising Growth of Legal Cannabis Sales
A significant bellwether for the cannabis industry is California. Considering they have the largest black market problem, it comes as a surprise that legal marijuana sales have primarily increased. In 2018, legal cannabis sales counted for $2.5 billion, and so far, the legal market has counted $3.1 billion for the first half of 2019.
If this is any indicator of the current state of legal cannabis sales, then it’s incredibly positive. By the time 2019 is up, California may be looking at nearly double the revenue it posted in 2018. It’s uncommon for most industries to post such substantial growth year after year, but the marijuana market just keeps on going up.
This is why we’re looking at the Golden Age for the legal cannabis market. If you’re ready to purchase a marijuana license, CBD business, or cannabis production license, then you’ll be adequately positioned for a prosperous future.
It’s unlikely that all black market cannabis sales will be snuffed out, but it’s apparent that the legal marijuana market is just finding its feet. It’s been the Wild West since legalization first occurred in Colorado, but the dominant days of the black market are numbered as regulators step in to help licensed cannabis business owners.