In a bold move to curb illegal cannabis operations, Governor Hochul announces the closure of over 500 illicit storefronts, sparking a surge in legal cannabis sales.
Governor Kathy Hochul announced significant progress in the fight against illegal cannabis operations, with the New York State Cannabis Enforcement Task Force closing 114 illicit storefronts in just three weeks. This state-level initiative, combined with local efforts, has resulted in the closure of over 500 unlicensed cannabis shops, leading to a 27% increase in sales for legal retailers.
“We are committed to building the strongest, most equitable cannabis market in the nation,” Governor Hochul stated. “In order to advance that goal, we promised to expedite the closure of unlicensed cannabis storefronts, and I’m here today to say: we’re getting it done.”
The crackdown has positively impacted the legal cannabis market, with retailers in enforcement areas reporting a significant rise in sales. Data from the Office of Cannabis Management (OCM) shows a 27% increase in sales from the first week of May to the first week of June, nearly seven times higher than the previous month-over-month data.
State enforcement agencies have reported seizing over $29 million worth of illegal products. New York City alone has closed nearly 400 illegal smoke shops, confiscating $13.3 million in illicit products and imposing over $30 million in fines.
The Task Force, led by the State Police First Deputy Superintendent, coordinates efforts across several state agencies to combat illegal cannabis activities. New York State Police Superintendent Steven G. James emphasized the collaborative nature of this initiative, thanking Governor Hochul for her leadership and resources.
Local leaders have voiced strong support for these enforcement measures. New York City Mayor Eric Adams noted the initiative’s success in restoring order and safety to the streets, while State Senators and Assemblymembers praised the Governor’s efforts to protect public health and bolster the legal cannabis market.
The FY25 Enacted Budget includes new initiatives to shut down illicit cannabis operations, giving the OCM and local municipalities increased authority. These measures are the strongest policies enacted to date to combat the illegal cannabis market, reflecting a broad legislative commitment to a fair and regulated industry.
The OCM continues to advance Governor Hochul’s vision of an equitable cannabis market through the Social and Economic Equity (SEE) program. Currently, 54% of new applicants are SEE candidates, highlighting the program’s success in promoting diversity and inclusivity within the industry.
With 135 legal dispensaries now operating across the state and a continued focus on enforcement, New York is making significant strides in creating a robust and equitable cannabis market. The collaborative efforts of state and local agencies, combined with strong legislative support, ensure ongoing progress in shutting down illegal operations and supporting legal retailers.
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