EisnerAmper Podcast Insights in the New York Cannabis Market
Sep 26, 2023
Kaelan Castetter, Managing Director of the Castetter Cannabis Group, shares his insights on navigating New York's cannabis landscape. He discusses the complicated licensing framework, emphasizing social equity initiatives amid ongoing litigation. Castetter highlights the financial challenges due to tax regulations and the impact of MasterCard's recent decision on payment transactions. The conversation also delves into the potential implications of federal legalization and how it could reshape state rights and the industry’s future.
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NY License Classes & Priorities
- New York has two main license classes: production and retail, both currently conditional and temporarily closed.
- The initial licenses were prioritized for hemp industry participants and those impacted by cannabis convictions.
Licensing Lawsuit Creates Uncertainty
- Ongoing lawsuits have blocked new adult-use dispensary licenses in New York, causing uncertainty.
- A judge finds the program likely illegal because licenses were not opened simultaneously as mandated.
No Formal License Cap in NY
- NY technically has no license cap, but practical limits and limited eligibility act as caps.
- Other states like New Jersey also avoid explicit caps, differing from more capped neighboring states.