New York’s Cannabis Crackdown Continues with 1,000+ Unlicensed Companies Closed Since April

New York Gov. Kathy Hochul (D) announced last week alongside New York City Mayor Eric Adams that since the governor expanded the state’s cannabis enforcement capabilities, city and state task forces have shuttered more than 1,000 combined illegal cannabis operators.

The governor ordered an audit of the cannabis industry roll-out in March after lawsuits wrought months upon months of licensing delays. Following the audit, the governor signed legislation to give the state’s Office of Cannabis Management (OCM) and local municipalities new authority to shut down the unlicensed cannabis operations that had proliferated during the botched roll-out.

“Earlier this year, I enacted new enforcement powers to quickly and permanently close the thousands of illegal cannabis retailers across New York selling potentially dangerous products — many of which are marketed to children and teens — and siphoning sales from hard-working, licensed store owners. I am pleased to join Mayor Adams and other officials to celebrate a milestone and recognize the enforcement teams who shut down more than 1,000 unlicensed stores statewide, bringing us closer to our goal of building the strongest, most equitable cannabis industry in the nation.” — Hochul, in a press release

Officials noted in a press release that despite the industry’s troubles, OCM has opened 152 legal cannabis dispensaries so far and this year awarded 730 additional adult-use licenses. Meanwhile, New York City has seen a 72% increase in legal cannabis sales in the 10 weeks since the enforcement actions began, according to the release.