Recreational marijuana sales one month into legalization

The cannabis industry in Montana completely changed when recreational marijuana became legal in multiple counties throughout the state on Jan. 1, 2022. Recreational weed was legalized in a total of 24 counties where the majority of voters supported Initiative 190 in Nov. 2020. While the cannabis business has grown immensely over the past month, with 76 licensed recreational marijuana dispensaries in Gallatin County, the ability for all of these individual businesses to thrive remains unknown.

 Marijuana dispensaries were anticipating a boom in business simultaneous with the legalization of recreational marijuana. And a boom they got, with just over $1.5 million in recreational sales on the first weekend of the new year. According to the Montana Department of Revenue, the total recreational marijuana sales were $12.8 million for the first month of 2022, putting the state on track to reach its projected annual sales. Additionally, with a 20% tax on recreational marijuana, the state is anticipating over $2.5 million in tax revenue this month alone from recreational sales.

 “It literally changed our business overnight,” Jackie Worden, a co-owner of Bozeman dispensary Juniper Cannabis, said. “Just going from a medical market to a rec market was such a difference.”

 The Governor’s Office of Budget and Program Planning projected that recreational marijuana sales throughout the state would reach $130 million in the first year of legalization and increase to $195.5 million by 2023. Based on these projections, the state could anticipate a monthly average of $10.8 million in recreational marijuana sales during the first year.

 Despite the recent boom in business, some local dispensaries are concerned about higher operating costs, changes in administrative policies and intense competition. In efforts to help curb out-of-state competition, until July 2023, the Department of Revenue is only providing recreational licenses to medical marijuana providers who were operating within Montana before the state voted to legalize recreational marijuana. However, businesses that had a Montana medical marijuana license before Nov. 3, 2020, are able to open dispensaries at new locations and could possibly increase their business by opening dispensaries in more populated markets.

 When asked about how the legalization of recreational marijuana has impacted business, Naomi Bottomly, a budtender at Treasure Tree, a dispensary located in Four Corners, said, “Everything has skyrocketed, basically. But there's fierce competition here in Bozeman.”

 Within the town of Bozeman, including Four Corners, there are currently 53 cannabis providers and just two of these providers are medical only. A few months ago the number of dispensaries in Bozeman was much lower due to a city-wide 20-storefront cap zoning regulation. In Oct. 2021, the zoning regulations for marijuana facilities were adjusted and the 20-storefront cap was removed. This change in regulation caused the cannabis market to become extremely saturated.

 “There's a lot of providers in Gallatin County, so there's a lot of competition here,” Worden said. “We'll see what happens. It's all super new. It's exciting. I mean, it's just a different kind of scene, new faces and tourists and some people that are like I've never even consumed and now I want to since it's legal. It’s a different market.”

 While recreational marijuana is now legal in Gallatin County, under federal law it remains illegal to possess, use, buy, sell or cultivate cannabis on the MSU campus. “As the recipient of considerable federal funding, such as financial aid, federal grants and research contracts, the university must comply with federal law and will continue to prohibit the use, possession and distribution of all federally controlled substances — including marijuana,” MSU Dean of Students Matthew Caires wrote.