ALBANY — After a slow and complicated rollout, New York’s legal cannabis industry has reached significant milestones, showing strong growth and improved operations.
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The number of licensed cannabis dispensaries has surged from roughly 80 in early 2024 to 275 by the year’s end, Gov. Kathy Hochul announced. Retail sales also surpassed $1 billion since legalization in 2023, with approximately $800 million generated in 2024 alone.
This growth followed a series of reforms implemented by Hochul, including leadership changes and the addition of more licensing staff at the Office of Cannabis Management (OCM). Industry leaders have praised the moves, which they say have put the state’s cannabis market on a better trajectory.
Hochul’s administration also intensified efforts to shut down illegal cannabis shops, closing 450 unlicensed operations as part of a crackdown led by state troopers. Despite these efforts, thousands of illegal shops remain active, officials noted.
“Today, we recognize the $1 billion milestone as more than just a number — it’s a testament to the hard work of those who helped build the strongest cannabis industry in the nation, one that prioritizes equity, ensures public safety, and empowers communities,” Hochul said in a statement.
Overcoming Delays and Challenges
New York legalized recreational marijuana in March 2021 under then-Gov. Andrew Cuomo. However, regulatory delays and litigation slowed implementation. Cuomo’s resignation later that year further disrupted progress, leaving Hochul to inherit an underdeveloped framework.
The state initially prioritized awarding licenses to “justice-involved” individuals—those with prior marijuana convictions—to promote equity. However, lawsuits delayed approvals, and by early 2024, only 80 dispensaries had opened, far fewer than planned.
In May, an audit revealed the OCM suffered from poor leadership, disorganization, and inadequate customer service. Hochul responded by appointing Felicia A.B. Reid as acting executive director, increasing licensing staff, and launching enforcement measures against illegal shops.
These changes have accelerated license processing and addressed concerns from industry stakeholders.
“Governor Hochul’s efforts to improve regulation have made a significant difference,” said Britni Tantalo, president of the New York Cannabis Retail Association. “The Office of Cannabis Management is more responsive, engaged, and collaborative. While there’s still room for improvement, retailers have seen tangible changes that support profitability.”
Economic and Social Impact
New York projects over 600 dispensaries will be operating by the end of 2025, with sales expected to top $1.5 billion that year. More than half of the state’s adult-use licenses have gone to Social and Economic Equity applicants, including minority- and women-owned businesses and individuals from marginalized communities.
Tax revenues have also surged. New York collected $67 million in cannabis-related taxes during the first half of the 2024-25 fiscal year, significantly outpacing the $80 million collected in all of 2023-24.
On Long Island, Babylon earned $2.6 million in cannabis taxes in 2024, while Suffolk County collected $871,000. Babylon Town Supervisor Rich Schaffer acknowledged the unexpected benefits, noting the town has used revenue to expand mental health and addiction services.
“We’ve turned it into a positive,” Schaffer said, despite initially opposing cannabis shops.
Looking Ahead
While progress has been made, challenges remain. Thousands of illegal dispensaries still operate statewide, and regulators continue working to balance enforcement with equity goals.
Industry leaders remain optimistic, emphasizing the importance of refining regulations, expanding opportunities for equity applicants, and sustaining growth in local markets.
With sales climbing and enforcement tightening, New York’s cannabis market is on track to solidify its position as one of the nation’s leading industries
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