Voters in Arizona, Montana, New Jersey, and South Dakota on Election Day approved ballot measures legalizing recreational marijuana--becoming the latest states to do so since Colorado and Washington became the first states to ratify in 2012. Currently, recreational cannabis is legal in 11 states and Washington, D.C., and has been decriminalized in 16 states. South Dakota also moved to legalize medical marijuana, as did Mississippi. This version of legalization is currently on the books in 33 states and Washington, D.C. Interestingly, D.C. voters on November 3 also approved the decriminalization of psychedelic mushrooms.
While the prospect of some form of marijuana legalization now hitting even more states is, well, intoxicating, the timeline should be sobering--with some efforts taking nearly a year to kick in. That's not great news for the legions of cannabis entrepreneurs champing at the bit to get an in these states.
But it's bound to be worth the wait. North America accounted for 88.4 percent of the global market size for legal marijuana in 2019, which clocked in at $17.7 billion and is expected to balloon to $73.6 billion by 2027, according to a 2020 industry report from Grand View Research.
As far as these latest ballot initiatives are concerned, voter approval is just the first step in the process. Next, state legislatures need to assess their current regulatory structures and establish the logistics of regulation and possession limitations. The timing of this process may be different in each state.
It's worth noting that medical marijuana use typically takes longer, as regulations need to be run through a state's Department of Health. For instance, South Dakota says it expects to hash out the details at least 120 days after the measure is passed, and under Initiative 65, Mississippi says it aims to establish a program by August 2021.
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