Marijuana Business Magazine - May-June 2018

CANNABUS¬NESS BY THE NUMBERS The Impact of Adult-Use Legalization on MMJ Programs Decline in MMJ patient counts in Oregon two years after rec sales began in October 2016. 27% Decline in MMJ patient counts in Colorado two years after rec sales began in January 2014. 3% Average number of patients leaving Nevada’s MMJ program per month since early rec sales began in July 2017 – about a 3% decrease each month. 757 Average monthly MMJ sales in Colorado in 2017. That represents a 9% increase over the $31.7 mil- lion average monthly MMJ sales in 2014, when rec sales began. $34.7M Decrease in the number of dedi- cated MMJ dispensaries in Oregon from October 2016 to January 2018 – a 96% decline. The latest available data show that only 16 medical-only dispensaries existed throughout the state as of January. 409 T he legalization of recrea- tional marijuana can put a big dent in a state’s pre- existing medical cannabis market. Patient counts in Colorado, Oregon and Nevada – the only states with both an active recrea- tional marijuana industry and a pre-existing MMJ patient database – have all suffered in the months and years since each state launched its adult-use market. Not all MMJ programs are cre- ated equal, however. While there are fewer medical marijuana patients in Colorado since rec sales began in 2014, MMJ sales have increased – likely driven by a combination of low-cost medical cards and significantly lower taxes on MMJ purchases. It may still make sense to regis- ter as a medical marijuana patient in Nevada or Oregon. But the incentives there are not as strong as in Colorado, given the Centen- nial State’s combination of lower taxes and affordable MMJ cards. Consequently, many occasional MMJ users in Nevada and Oregon are not renewing their medical cards, choosing instead to pur- chase marijuana from the more easily accessible rec market. Here’s a closer look at the situation. 10 • Marijuana Business Magazine • May-June 2018