A Marquis Day in Pot Legislation
In case you missed it last week, there has been a major shift in the U.S. marijuana market.
And it could help fuel a major run in pot stocks across the entire cannabis industry.
That’s because last Saturday, recreational pot became legal in Las Vegas.
The New Amsterdam of the West
Obviously, Las Vegas isn’t the first place in the U.S. where recreational marijuana is legal — but it might be the most important. It’s Sin City, after all.
Vegas is a tourist hot spot built on having fun and doing things that would get you in trouble back home. That means, more than any other jurisdiction where pot is currently legal for recreational use, Las Vegas is going to expose a huge swath of tourists to legal weed.
Much like tourists flock to Amsterdam to frequent their world famous “coffee shops”, they will flock to Las Vegas en masse.
A report from a task force put together by Nevada’s governor estimates that 63% of recreational pot buyers will be tourists.
But where things get interesting is the huge demand imbalance that’s expected during the early weeks and months.
When Colorado legalized recreational pot sales back in 2014, it took the better part of a year for the supply of weed to catch up with the demand.
Vegas dispensary owners expect traffic to their businesses to increase by two- or threefold overnight.
And there are big ways way to profit from this trend.
A Key Advantage for BIG Gains
The most successful legal growers and proprietors in Nevada’s new markets will be the ones who own both a production license and a cultivation license.
And because there are only a handful of proprietors with both in Nevada, these specific companies have a unique advantage in the new market.
That translates to strong earning potential for you.
Companies with both licenses can purchase raw plant material from growers who lack a production license to process the cannabis and then resell that pot to dispensaries.
They can also grow the cannabis, selling that plant material to companies who only have production licenses and need access to raw materials for their own products. And this is all in addition to the company’s own products.
Having both licenses is especially valuable right now as dispensaries try to load up on as much inventory as they can in preparation for the huge jump in demand and expected complications due to new distribution laws.
A recent court ruling could position liquor distributors as the middlemen between growers and dispensaries, so dispensaries are stockpiling as much product as they can before that happens.
Despite these minor hurdles, the future looks very good for Nevada pot. And especially good for the handful of major legal pot distributors with dual licenses in the Las Vegas area.
In the meantime, I’ll continue to track the progression of events in Las Vegas, and as new earning opportunities present themselves you’ll be the first to know.
To a bright future,