Marijuana Business Factbook 2019

227 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Retailers | Chapter 5 MJBIZDAILY.COM CHART 5.03: Number Of Retail Locations & Total Fees For Sampling Of Recreational & Medical Markets Each state market is distinct, driven by unique regulations governing licensing fees and caps. Some states, including New York and Rhode Island, grant a very limited number of retail licenses with extremely high licensing fees. Rhode Island recently raised its biannual licensing fees from $5,000 to $250,000 ― a fiftyfold increase. The financial impacts of this increase to revenue remains to be seen. In New York, vertically integrated retailers are subject to state regulations that set prices for medical cannabis products, taking some of the control of business operations out of the hands of retailers. While New York and Rhode Island represent two of the most tightly controlled markets with high barriers to entry, others are more open and have kept the barriers low. In Oregon, regulators decided to forgo licensing caps and have instituted fairly modest licensing fees with the goal of encouraging a competitive business environment. This has resulted in a highly competitive marketplace with an abundance of cultivators and retailers, a surplus of marijuana and wholesale prices that have been driven down to what may be unsustainable levels.