It’s been five years since New York legalized recreational marijuana.

The state’s industry has generated billions of dollars in sales, but there is still a backlog of thousands of applicants who have been waiting years for approval to open shop.

New York’s booming cannabis market

New York, New Jersey and Connecticut all legalized recreational pot in 2021.

Since then, a total of 631 licensed cannabis dispensaries have opened across New York. That’s nearly double the number of dispensaries in New Jersey – 396 – and eight times the number of dispensaries in Connecticut, which has just 74.

So far, New York’s cannabis market has generated $3.3 billion in sales. 

Selling weed is down to a science at Conbud on the Lower East Side. Owner Coss Marte spent six years in the early aughts locked up for slinging drugs on the same block. Now, everything is above board at his licensed dispensary, which opened in 2023.

“In the beginning, it, like, really started off, you know, slow start, getting people here,” Marte said. “It went and, like, skyrocketed. I think last year was gonna be probably our best year.”

Application backlog

But not everyone is getting in on the green. 

Beck Hickey is one of about 3,000 people who applied through the state for a dispensary license back in 2023 and whose applications are pending approval from Albany.

“I was really excited about starting something new in an industry that was new,” she said. “They gave us a lot of hope that it was gonna happen, so I sort of kept moving forward … I had investors ready, but because the application wasn’t even being reviewed, the investors felt uncomfortable and, you know, left.”

John Kagia, acting executive director of the New York State Office of Cannabis Management, said his department is getting through applications as fast as they can.

“We are committed to continuing to do this work and ensure that the folks who want an opportunity to participate in this market get the chance to get a bite at this apple,” he said.

In the meantime, the state is no longer accepting applications for dispensary licenses.

The executive director said the state aims to get through the backlog of thousands of applications from 2023 in the next few months, but they don’t have a timeline for when they will reopen for new applicants.

Unlicensed dispensaries flourish

It took a year and a half after the state first legalized recreational marijuana for the first licensed dispensary to open, and that lag allowed unlicensed dispensaries to flourish, impacting licensed dispensaries.

While the New York City sheriff has since cracked down on illegal shops, experts say if the state doesn’t approve more licenses soon, the underground market will regrow.

“The longer you wait, the longer you allow the illicit market to continue to have its grips on the industry,” cannabis attorney Jeffrey Hoffman said, “and the longer you delay the tax revenue that everyone hopes will come from the industry.”

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