As cannabis continues its march toward wider acceptance across the United States, 2024 has brought more states into the fold, with new laws coming into effect that either legalize medicinal or recreational cannabis. These changes mark significant progress in cannabis reform and could also provide a notable boost to the economies of these states. Here’s a look at the newest states to legalize cannabis in 2024, their timelines for implementation, and how this shift might impact their economic outlook.
Ohio: Legalizing Recreational Cannabis
Ohio made headlines in 2024 as the state finally legalized recreational cannabis after a hard-fought campaign. Ohio had already legalized medical marijuana in 2016, but recreational use was on hold until now. The new legislation went into effect in March 2024, making it legal for adults aged 21 and over to purchase and possess cannabis for recreational use.
The economic impact in Ohio is expected to be significant. By 2025, cannabis sales are projected to generate $1.5 billion in revenue annually, thanks to recreational legalization. This will likely create jobs across the supply chain, from cultivation to retail, and boost state tax revenues. With additional tax revenue, Ohio can direct funds toward infrastructure, education, and public health initiatives.
Source: Ohio Legalization News
Maryland: Expanding to Recreational Use
While Maryland already had a medical cannabis program in place since 2017, the state voted to legalize recreational cannabis in 2023, with the new laws taking effect on January 1, 2024. Maryland residents aged 21 and over can now purchase cannabis from licensed dispensaries, although the state has put in place stringent regulations to ensure a smooth transition from medical to recreational use.
Economists project that Maryland’s recreational cannabis market could reach $1 billion by 2025, driven by demand from both local residents and neighboring states where cannabis remains illegal. The state’s already robust medical cannabis infrastructure is expected to help Maryland rapidly scale up its recreational market, driving economic growth and generating new jobs in the retail and agricultural sectors.
Source: Maryland General Assembly
Minnesota: Full Legalization
In May 2024, Minnesota joined the growing list of states to fully legalize both medical and recreational cannabis. While medical cannabis has been legal in the state since 2014, recreational cannabis sales will begin in July 2024. This move is expected to dramatically increase revenue streams from cannabis, with estimates suggesting that Minnesota could see up to $1.6 billion in annual sales by 2026.
The legalization of cannabis is also expected to benefit Minnesota’s agricultural industry, providing opportunities for small farmers to diversify their crops. Additionally, new tax revenues will be allocated toward social equity programs, particularly those aimed at communities disproportionately affected by cannabis-related arrests.
Source: Minnesota State Government
Economic Outlook for Newly Legalized States
The economic potential of cannabis legalization has been a major selling point for states like Ohio, Maryland, and Minnesota. Legal cannabis markets tend to generate significant tax revenues, create thousands of jobs, and spur growth in ancillary industries such as real estate, security, and packaging. As these states implement their new cannabis laws, they are likely to see economic benefits that extend well beyond the cannabis sector itself.
Sources:
