Why Weed Going Legal In NYC Caused A ‘Gray’ Market Boom

In the densely populated Tri-State area of New York, New Jersey and Connecticut, the rollout of legal weed has been called slow and cumbersome, allowing for the proliferation of "gray" market storefronts and businesses to sell marijuana without going through the regulatory process.
As the tri-state metro prioritizes the equitable upbringing of the cannabis industry via social equity applications, councils and funds, several hurdles to entry have limited the number of legal dispensaries able to open and begin business.

Correction: At 03:56, this video mischaracterized the status of New Jersey's home cultivation laws. Bill S353, which legalizes growing or possessing up to six marijuana plants for personal recreational use, is currently pending technical review. Current state law prohibits personal cultivation, and is punishable by 5 years in prison.

Chapters:
00:00 - Introduction
03:06 - Illicit market thrives
05:34 - Social Equity Applicants
08:11 - Pushbacks to legal recreational marijuana
09:18 - What’s next?

Produced by: Christian Nunley
Edited by: Dennis Donovan
Graphics by: Alex Wood
Camera by: Christian Nunley, Brad Howard, Jeff Morganteen
Supervising Producer: Jeff Morganteen
Production Support: Stefan Sykes

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Why Weed Going Legal In NYC Caused A ‘Gray’ Market Boom

[kenrickobrien]

The problem is why would you spend 80 when you could spend 30? The dispensary are overpriced and taxed

[ebdhudnav]

Just remember, alcohol has less regulations and less taxes...

Make marijuana to be taxed and sold like hard liquor.

[jasonhatfield]

No one seems to be learning from anyone else's mistakes. If you try to overregulate weed, the black market will thrive. Alcohol has had over 100 years of trial and error when it comes to regulation (since the end of prohibition). There's virtually no black market for alcohol. Do the same exact thing for weed. Don't try to reinvent the wheel.

[mackpines]

The biggest problem is that because pot is still considered illegal on the federal level, these stores can only accept cash and not take cards.
Having huge amounts of cash makes these dispensaries more attractive to thieves.
We HAVE to decriminalize pot on the federal level. Ridiculous that it’s still that rank.

[beunvme]

A smoke shop got raided by NYC sheriff's and took 50k worth of weed they were back to selling weed the next day.

[angelapalmer]

During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?.

[briank.]

If you want to sell weed legally, you need to be arrested for selling weed first. Perhaps all the people selling grey market weed want to get arrested so they are qualified to sell legal weed...

[TomMcMorrow]

At 3:56 you state that "Home cultivation of marijuana [in New Jersey] is legal for adults 21 and older". This is incorrect. Here in New Jersey any home cultivation is punishable by at least 3 to 5 years in prison and $25, 000 in fines.

[verbzfromnyc]

NY, NJ and CT have talked a good game about expungements, but those are only for small cannabis offenses...what about expunging or freeing people currently doing time for cannabis distribution?? The states have no interest in that... 

As a war on drugs veteran myself (cannabis only), i have done over 6 years of probation and ~$45k in fines/lawyer fees/lost property... the states will never return one cent of that. Also, as a social equity eligible applicant, the seed money required for starting/owning my own business is still incredibly high. I say long live the grey market until there is real equity.

[muibueno]

The taxes are killing the game for the poorer Customer, if someone would like to buy clean good stuff ... but they just can't achieve it.
Sad story

[DerekDAngel]

It's wild to me how when a state legalizes cannabis, the formerly known "drug dealer" is now a highly successful and legalized business that's recognized by the state government as an LLC. That's how it should be, but to think that at various points through out history some of these "drug dealers" were killed during search warrants and/or seizures is somewhat morbid to think about. Just to think that individuals who specialized in botany/agriculture/biology as well as were murdered for A PLANT is horrifying. Our children's children are going to be terrified of our generation 😂😂🤣🤣😅😅

[thetruerevo]

Like Canada this whole system seems to be designed to fail for everyone except the friends of the peoples making the laws that can pay to play.

[louielouie]

And of course when states jump on board they ruin everything. The prices for weed are supposed to go down now that it's legal not up!! It was expensive for years because dealers needed that bail money! They're setting their prices according to what those ex convicts set their prices at a decade ago. I'm staying under ground the weed is better anyway.

[MrTurnipsss]

All the legal spots are in Manhattan. You expect me to travel everyday with cash downtown just for a puff? Your buggin

[damnjustassignmeone]

Ironically, if the people selling pot illegally get convicted of it, they’ll then have a leg up on the competition in getting a license to sell it legally. This is NY politics for you.

[kingkawala]

It's weird that they act like the lack of regulations isn't the reason there were so many stores taking it upon themselves to sell weed and then after they do what you make it seem like it's their fault should have had some rules in place as soon as recreational marijuana was passed

[kimberlykim]

Where is right for people and children who don’t smoke and health?
It’s not just the weed problem people lace with other drugs to smoke with it which is real threat to health of majority
It should be illegal because the government cannot create clear rules that’s fair for majority populations none smokers!!

[caducoppini]

“We need to understand what this drug does”
Buddy we’ve been smoking for by centuries. It gets you high, hungry, then sleepy in that order. Period. Who are you working for? Alcohol industry?! Is there anyone interested in regulating and controlling THAT lethal market?!

[MrLiridonf]

What do you mean by black and hispanic being disproportionately convicted? If you do illegal stuff of course you will and should be convicted. If you don’t want to be disproportionately convicted don’t do disproportionally crimes. We should not legalize drugs for the sake of social justice and lost tax revenues. Social justice is when the criminals get punished for their criminal activities and that’s that. People should understand that once and for all and should condemn and stay away from drugs if we want a healthy society. Otherwise we will be a zombie nation.

[DTUFINOPhotography]

NYC has a "smokeshop" issue... they are popping up everywhere.