It hasn’t been too long since the state of Nevada moved to the forefront of the cannabis business by adding recreational use to its legal model. Now figures from the Nevada Department of Taxation point towards the state breaking new ground in the amount of sales being produced.
The demand has been so strong due to the influx of tourists and visitors to Las Vegas, there even was a shortage of product.
A new report from the Reno-Gazette Journal indicated the Nevada Department of Taxation released the figures from the first month of cannabis sales in the state.
Banking on weed, Nevada made $10.2 million off the fledgling industry during the first month of sales in July, according to the Nevada Department of Taxation. Of that, $6.5 million came from industry fees and $3.68 million came from tax revenue.
Sales blow away the ones from similar states
Riana Durett, executive director of the Nevada Dispensary Association, told the Reno-Gazette Journal these figures amount to a success in what otherwise would have gone over to the black market.
It’s not that everyone decided to start consuming marijuana because it’s legal, it’s just now that we can realize the tax revenue,” Durett said.
According to the report the sales for Nevada on its first month available was nearly double of what Colorado and Oregon, while it amounted to closely seven times what Washington made during their first month of sales.
The main appeal debated for recreational use of cannabis for companies and investors is the potential of the million of visitors in Las Vegas every year.
A report from New Frontier in partnership with Arcview Market Research, done before the election of legalization for recreational cannabis, indicated on the possibilities for sales in the state of Nevada.
“Arcview Market Research’s official market projection is that annual legal cannabis sales will grow at a compound annual growth rate of 51 percent; from $121.6 million in 2016 to an estimated $630 million by 2020,” the data indicated.
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.