Monday Night Football & Bong Rips
There is industry that is predicted to have annual revenues of $35 million or more by the year 2020. That is twice as much revenue as the NFL who brings in $10 million a year at this time. The newspaper publishing industry comes in at $38 million and the confectionary industry at $34 million. The industry that is expected to top the revenue of the NFL is the marijuana industry.
The prominent research and financial company Greenwave Advisors recently released a report that stated “”a comprehensive research and financial analysis for the emerging legalized marijuana industry,” projects that legal cannabis could be an industry with revenues of $35 billion by 2020 if marijuana is legalized at the federal level.”
The figures reported in the analysis come from taking into consideration current and future medical and recreational marijuana markets. Greenwave is predicting that 12 states including D.C. will have legal recreational marijuana by 2020 and medical marijuana will be acceptable in 37 states. With those estimates, Greenwave feels confidant in saying that even if there is not full federal legalization by 2020, legal marijuana revenues could be in excess of $21 billion, which is still double that of the NFL.
Obviously the fact that federal government currently holds steady on its Schedule 1 classification of marijuana is a bit unsettling, especially for potential investors. So far the feds have not moved in on the legalization efforts in Washington or Colorado. But that is not always the case. The DEA recently raided one of the “best” dispensaries in the LA area, seizing computers, cash and cannabis, from multiple locations. The Huffington Post reports that the DEA has still not given a reason for the raid.
The upcoming presidential election in 2016 could definitely play a big part in the future position of the federal government on marijuana classification. Who Obama nominates for the position of Attorney General between now and 2016 could also have an effect on the situation.
No matter what happens in regards to legalization, the potential for growth in the industry is real. There is probable possibility of a significant increase in jobs and tax revenue. Fears that “society will crumble” as a result of more and more states legalizing cannabis remain to be unfounded. The Cato Institute recently released a report that talked about the effects, socially and economically on Colorado since it legalized marijuana last year. In regards to crime, drop out and graduation rates, alcohol use, fatal car crashes and a lot of other factors, it was stated that marijuana use and the states policies had very little, if any impact on those factors.
The question that will remain for the time being is how the federal government will or won’t impact the growth of the industry.
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Ever since Illinois legalized cannabis earlier this year, we’ve seen the industry just explode statewide. Chicago now has dispensaries and clinics popping up everywhere – two years ago this didn’t exist!
That’s a very good point. I think we’ll be seeing a lot more of that as more states continue to legalize both medical and recreational.