Ontario Cannabis Stores, the province's pot supplier, charges a 31% mark-up to retailers.
The province of Ontario made more than a half a billion dollars from the cannabis industry in the last fiscal year, according to public accounts released by the government on Friday.
But that $520 million is coming at least partially at the expense of struggling local retailers, according to Michael Armstrong, a business professor at Brock University in St. Catharines, Ont.
"About 56 cents of every dollar you spend at a cannabis store goes to the businesses, the retailers and producers," Armstrong told CBC Toronto.
"The other 44 cents is going to government in one way or another," he added.