Nevada Cannabis Market Legalization

Nevada voters legalized medical cannabis on the ballot in 2000. In 2013 the state Legislature passed a law allowing for medical dispensaries.

On November 8, 2016, voters approved ballot Question 2, giving adults in Nevada the ability to consume up to an ounce of cannabis. The new law, the Regulation and Taxation of Marijuana Act, took effect in the state on January 1, 2017, and recreational cannabis sales became legal on July 1, 2017.

There are six types of cannabis licenses:

  • Cultivation facility
  • Product manufacturing facility
  • Cannabis testing facility/independent testing lab
  • Distributor (adult-use only)
  • Retail cannabis store/medical dispensary
  • Cannabis consumption lounges

How to Start a Legal Cannabis Business in Nevada?

In 2018, there were 659 final medical and adult-use certificates/licenses issued and 245 provisional/conditional certificates/licenses. In 2019, Nevada awarded 65 conditional adult-use retail licenses to 17 separate businesses, bringing to 125 the number of recreational cannabis shops allowed statewide.

Nevada Cannabis Market Perspectives

In the 2018 fiscal year (July), Nevada retailers sold about $530 million worth of medical and recreational cannabis, with the adult-use market generated roughly $425 million of that revenue, an average of $35.4 million per month.

Cannabis sales were driven by two main factors:

  • Nevada’s early start program.
  • Over 55 million visitors travel to Las Vegas each year.

State tax officials reported $685 million in taxable sales in the 2020 fiscal year that is up $46 million from the previous year (7%) and $1,003 million in the 2021 fiscal year that is an increase of over 45% from the previous period, with the adult-use market generated roughly $920 million of that revenue, an average of $76.7 million per month. Total sales for fiscal years 2022 and 2023 decreased to about $965 million and $848 million, with $893 million and $801 million coming from adult cannabis sales, averaging $74.4 million and $66.8 million per month.

In calendar year 2021 (January-December), cannabis sales totaled $1,042 million. Total sales for year 2022 decreased to about $896 million, with $816 million coming from adult cannabis sales, averaging $68 million per month. 2023 calendar year generated $840 million in total cannabis sales, including $776 million of adult use cannabis sales.

Flowers make up a large proportion of total sales, while concentrates and edible forms beginning to increase their shares.

Cannabis business is subject to the following taxes:

  • 15 percent excise tax on the wholesale sale;
  • 10 percent excise tax on the retail sale.

Cannabis tax contributions have increased by 6% year over year, from $99.18 million paid in the 2019 fiscal year to $105.11 million in 2020, by 50% to $157.75 million in 2021 and decreased to $152.33 million in 2022 and $133.09 million in 2023.


Nevada Cannabis Market Infographics


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