Medical Reciprocity in Nevada Creates Valuable Cannabis Market

Nevada’s new medical market is a unique one
for the U.S.  The state will allow any
legally registered medical patient from anywhere in the world to purchase
cannabis from newly authorized dispensaries the state is in the process of
vetting and setting up.

While not the only reciprocal market (Maine
and Rhode Island have similar kinds of provisions), Nevada is unique because
the wider reciprocity allowed creates incentives for Nevada dispensaries to
market to out of state potential customers. 
As a result, Nevada could become a leader in the still-dormant cannabis
tourism industry that in other states has curiously lagged behind wider
legalization.

In addition to this, because the state does
not require dispensaries to be locally owned, Nevada may also become a hub for
cannabis business franchising (particularly for deep pocketed investors) that
has yet to become widely established because of existing federal cannabis laws.  This is an idea that has been simmering with
greater heat this year, particularly given the implications for federal reform
many believe is much more imminent given this year’s so-called “Cannabis
Elections” in three states, the District of Columbia and Guam.

Nevada currently hosts 40 million tourists
a year.  Patients in Nevada, including
qualifying visitors, will be allowed to possess up to 2 ½ ounces in a two week
period.  As a result, the state market
could become one of the most valuable in the country very quickly, particularly
given ongoing efforts to create a legalized “recreational use” market, widely
expected to be on the state ballot for 2016.

As a widely watched and essential national
pilot program, the Nevada model is also already one many see as largely
revolutionary for the cannabis business to come.