$20 Million Spent On Recreational Weed In Illinois In 12 Days

CHICAGO — Pot purchasers spent nearly $20 million on recreational weed in the first 12 days of sales in Illinois, state regulators said. Despite widespread supply shortages, long lines and a limited number of locations, almost a half-million cannabis transactions were completed at adult-use dispensaries from Jan. 1 to Jan. 12, the Illinois Department of Financial and Professional Regulation announced Monday.

"Illinois had a far more successful launch of cannabis than many of the other states that have legalized, but this is about more than money, it's about starting a new industry in a way that includes communities left behind for far too long," said Toi Hutchinson, the governor's senior adviser for cannabis control.

"Members of those communities will have the opportunity to apply for licenses to open a dispensary, become a craft grower or infuser, or transport product under the new law," said Hutchinson, a former Democratic state senator from Olympia Fields and co-sponsor of HR-1487, the Cannabis Regulation and Tax Act. "Illinois is the only state in the country to take an equitycentric approach to the legalization of cannabis and I thank all those who worked hard to make the launch a success."

Sales data released Monday means the rollout of the retail sale of recreational cannabis in Illinois is likely second in size only to California's 2018 legalization. The state's cannabis control bureau did not track retail sales, but rough estimates of gross revenue exceeded Illinois' sales numbers. However, by the end of the first year of fully legalized cannabis in California, the state actually collected about $500 million less in tax revenue than the year before.

Oregon recorded the most early sales of states that tracked retail transactions. When that state legalized recreational marijuana, it already had nearly 270 medical marijuana dispensaries — meaning there were more pot shops in the state than McDonald's or Starbucks.

Illinois, with population about three times as large, exceeded Oregon's nearly $11 million in first-week sales by about $1 million with fewer than 40 dispensaries selling adult-use cannabis at the time of legalization.

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The Illinois Department of Revenue has yet to release data of how much tax revenue has been generated through the sale of adult-use cannabis. Initial tax payments are due from dispensaries at the end of next month.

Marijuana tax revenue in Illinois is set to be divided up with 35 percent going to the state's general fund, 25 percent to the R3 — "restore, reinvest and renew" — program to invest in areas disproportionately impacted by cannabis prohibition, 20 percent to mental health and substance abuse treatment, 10 percent for the backlog of bills, 8 percent to support local law enforcement agencies and 2 percent for public education and analysis of cannabis legalization.

Cannabis retailers in the Chicago area have been struggling to keep merchandise in stock. Several dispensaries stopped selling to customers without medical marijuana cards soon after legalization. Some set limits on the amounts or types of product available for purchase. Another dispensary cut down the hours for recreational sales.

"What we did to manage the demand and our own inventory is limit hours for adult-use to four hours in the beginning of the day," said Christian Langbein, vice president for communications for MedMen, which operates a dispensary in Evanston. "It's enabled us to establish a nice flow of business and allow for the best possible experience for our customers during a time when the demand is so high."