Supporters of marijuana legalization often argue that it would benefit small businesses and minority-owned enterprises and communities of color that were disproportionately harmed during the decades long war on drugs. But guess what? More and more states report that big companies and deep-pocketed interests control the emerging marijuana market. Now, a merger of two Canadian cannabis companies points to further consolidation of Big Pot and its power. The combined companies—Aphria and Tilray—would be the largest cannabis operation globally by revenue, and it would control 17 percent of Canada’s adult-use market. More deals are likely, analysts say, as legalization continues, consumers adopt the “cannabis lifestyle,” and larger consumer-products makers also eye the opportunity to sell pot-infused foods, beverages and skin-care products.
At the same time, Big Pot is optimistic about more liberal marijuana policies under a Biden presidency that would allow the industry to flourish—even if the changes stop short of federal-level legalization. Opinion polls show an overwhelming majority of Americans favor legalization, and the issue is slowly gaining bipartisan support, especially at the state level.
And finally, New York Governor Andrew Cuomo has made it abundantly clear that he too favors legalization, and is ready to push it through the state legislature next year—in part to help plug a $15 billion budget gap caused by the COVID-19 economic downturn. Cuomo has twice failed to win passage of legalization, as bills stalled over taxes and where to allocate revenue. Now he’s more optimistic about cannabis reform, given that neighboring New Jersey this year approved legalization, and considering the state’s dire financial situation—although it’s uncertain how much money pot tax revenues would eventually bring in.