Washington State Reports First Month of Recreational Cannabis Sales

Washington State, the second state in the
country to legalize recreational or “adult-use” cannabis, has reported the
results of its first month of sales. 
Despite officially starting a full week into the month (stores opened
for business on July 8), as well as the existence of significant logistical
problems including product supply, the news is overall positive.

Stores in Washington State reported
generating $3.8 million in sales in July, generated from 18 establishments
which average $160,000 in sales per store per day.  An additional 40 licenses have been issued
and several hundred applicants are awaiting permits. 

Colorado, now in its seventh month of
recreational sales, reported a tally of $24 million in June. That is the
highest month of sales to date in the state. 
First month sales in Colorado pulled in $3.5 million combined with medical
sales.  In Colorado, although widely underreported,
medical taxes still represent the largest amount of directly collected sales
tax income, although recreational income for the state is growing fast.

In Washington State, the medical cannabis system
was not initially as regulated as Colorado’s traditionally has been. Because of
this, new recreational laws essentially scrapped old regulations. However, medically
oriented dispensaries have a generous grandfathered window of up to two years
to comply with new state regulations. 

In all, both markets appear to be rolling
out roughly at the same pace, even if staggered with a space of 7 months.  While Colorado’s last quarter of 2013 saw
many of the same issues that have plagued Washington’s recreational inception— from
product shortages to problems with licensing and implementation of new
regulation— there’s no doubt in mind things will ease over as the program
continues on.

Overall, the nation’s second recreational
market wrapped up its first month with respectable numbers and an eye towards
smoother sailing as the market establishes itself.

With neighboring state Oregon likely to
vote for recreational use in November (along with Alaska and municipalities all
over the country), recreational use models are picking up acceptance
nationwide.  Washington’s model, while different
in some aspects to Colorado, will also undoubtedly be studied by other states
on the verge of both recreational and medical reform.