Legal Marijuana Could Reach $1.2B Yearly Market High In NYC: Study

NEW YORK CITY — Legal marijuana could be a $1.2 billion-a-year industry in New York City, but unlicensed pot shops threaten to Bogart that tax windfall, a new study found.

The estimated 1,500 unlicensed weed stores currently in the city hold as much as $484 million in cannabis products, according to a study released this week by the New York City Independent Budget Office.

Those unlicensed sales could create a big hit to the anticipated up to $105 million a year in tax revenue for New York City's legal recreational cannabis market, which has already had a slower-than-anticipated rollout, the study states.

"As enforcement operations continue in New York, the precise timeframe for —and ultimate effects of—reducing unlicensed retail cannabis activity is unclear," the study states. "As the number of unlicensed smoke shops in New York City falls, total local cannabis tax revenue will likely increase—especially if more licensed dispensaries open at the same time."

The study's finding comes as New York's legal cannabis industry is under a court-ordered freeze over a lawsuit from disabled veterans who argued state officials broke the law by giving convicted pot dealers the first hit when it comes to licenses.

New retail weed licenses and storefronts can't open until a temporary restraining order is lifted — a state of affairs that could further slow the legal pot market, the study warned.

Only nine licensed dispensaries have so far opened in New York City, records show.

The city's legal cannabis market may not reach nearly $1 billion in sales until 2027 or even later, depending on the pace of dispensaries opening, the study found.

"The lack of clarity is due to the widely acknowledged slow rollout of licensed cannabis dispensaries in New York City and across the state," the study states.