Ballot measures legalizing marijuana being considered in five states this fall could generate billions of dollars in revenue within the first few years of taking effect, industry experts predicted Wednesday.
New Frontier Data, an analytics company focused on the cannabis industry, estimated annual revenue made by legal medical and recreational sales within the U.S. will succeed $35 billion if the measures pass.
Voters will consider legalizing recreational, or adult-use, marijuana in Arizona, New Jersey, Mississippi, Montana and South Dakota. Legalizing medical marijuana will be on the ballot in South Dakota as well.
“The 2020 election could be one of the most consequential and historical events to change the landscape of the legal U.S cannabis industry,” said Giadha A. DeCarcer, New Frontier’s founder and CEO.
“With $9 billion in new revenue from 2022-2025, should all five states ballot measures pass, New Frontier Data estimates that revenues from all legal U.S. markets will reach $35.1B in 2025,” he predicted.
Although marijuana is illegal under federal law, 33 states and Washington, D.C., have passed legislation allowing its use for medicinal purposes, including 11 that have also legalized recreational pot.
Of the 11 states to legalize recreational marijuana, nine currently have systems in place for adults to purchase it from licensed and regulated commercial dispensaries. Vermont is set to likely join them next.
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