Pritzker administration announces cannabis sales figures

Over $10 million in sales in first days

information provided by the Office of the Governor

CHICAGO, Ill. (January 6, 2020) – The Illinois Department of Federal and Professional Regulation has announced that statewide adult-use cannabis sales from Wednesday, January 1, through Sunday, January 5, totaled $10,830,667.91. Dispensaries across the state rendered 271,169 transactions over the five-day period.

  • Wednesday, January 1—77,128 transactions totaling $3,176,256.71
  • Thursday, January 2—56,762 transactions totaling $2,252,586.51
  • Friday, January 3—55, 161 transactions totaling $2,209,065.01
  • Saturday, January 4—51,174 transactions totaling $2,004,019.43
  • Sunday, January 5—30,954 transactions totaling $1,189,252.18

As part of the state’s focus on equity, 25 percent of cannabis sales tax revenues will support the Restore, Reinvest and Renew (R3) program, which aims to address the impact of economic disinvestment, violence, and the historical overuse of the criminal justice system. The Department of Revenue expects to have a tax revenue estimate by the end of February, when initial tax payments from dispensaries are due.

“The successful launch of this new industry is a historic development for our state that will benefit the very communities that have been disproportionately impacted by the failed war on drugs,” said Toi Hutchinson, Senior Advisor to the Governor for Cannabis Control. “As we move into the next phase, the Pritzker administration is proud to see the robust interest in dispensary ownership from social equity applicants, and we encourage them to apply for $30 million in loans that we have available to reduce the capital barriers to entry. Unlike any state in the nation, Illinois has set the standard for what it means to legalize cannabis in a way that begins to right the wrongs of the past and gives new opportunity to those that have been left behind for far too long.”

On Thursday, January 2, the Department concluded the first round of applications for new dispensary licenses. A preliminary count shows that more than 700 applicants submitted applications seeking almost 4,000 licenses. More than 600 of the applicants identified themselves as qualifying for social equity applicant status. The Department will award up to 75 new dispensary licenses, which will be announced by May 1, 2020.

The application process provides several avenues for social equity applicants that are unique in the nation. Of the total points possibly awarded during application scoring, 20 percent are designated for social equity applicants, who also receive a 50 percent waiver for non-refundable application and license fees.

To defray the start-up costs associated with entering the industry, social equity applicants have access to a low-cost loan fund, primarily funded by existing dispensaries, and are allowed 180 days from the license award date to identify a physical location for the dispensary. Ownership limitations are also in place to protect market share for new applicants. Following the awarding of the next round of dispensary licenses, the state will also conduct a disparity study to ensure the market reflects the equity goals of the historic legislation.

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1 thought on “Pritzker administration announces cannabis sales figures”

  1. From the WSJ, 1/7/2020:
    Tobacco, marijuana and vaping companies mislead the public on the clear harms associated with wider use of today’s higher-THC-content marijuana and inhaling substances other than clean air. Opponents of expansion of marijuana availability acknowledge concerns about disparate enforcement of drug laws. But the costs to society from legitimizing the addiction industry far outweigh the benefits. Meanwhile, proponents of recreational marijuana push the false narrative of a tax windfall for governments and improved safety for users while ignoring the harms: mental-health issues, addiction, acute and chronic lung disease, domestic violence and more.
    Thomas J. Madejski, M.D.
    Albion, N.Y.
    Dr. Madejski was president of the Medical Society of the State of New York from 2018 to 2019.

    Reply

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