By Miya Morrison
March 16th, 2025; Last Updated April 7th, 2025
As New Jersey cracks down on unlicensed cannabis sellers, a growing divide emerges between the legacy market and the legal industry. While the state’s cannabis market surpasses $1 billion in sales, high taxes, and regulatory hurdles keep the black market thriving—raising questions about who truly benefits from legalization and whether capitalism is erasing or evolving the underground cannabis economy.
Under the guidance of Steven Fulop, mayor of Jersey City, and other state agencies, the Jersey City Quality of Life Task Force conducted a targeted enforcement operation on Saturday, March 9th. This operation led to four arrests, 14 summonses issued, multiple city code violations, and the confiscation of over 13 pounds of marijuana and thousands of untaxed tobacco products. As most of you reading are mainly known to New York and their policies regarding the selling of cannabis, it shouldn’t surprise you that the same crackdown operations have been happening in the “Big Apple” for a while now. Just as recently as March 21st, U.S. District Court Judge J. Paul Oetken ruled that NYC’s crackdown on illicit marijuana operators was constitutional. However, it can be stated that the ways of getting a license for selling marijuana are easier to complete or understand in New York while Healy NJ LLC has a different sentiment to New Jersey’s licensed cannabis policy.
“Jersey City recently raided smoke shops they called illegal while their licensed cannabis policy is unclear.” Further into the independent media company’s article, they state, “While raiding smoke shops, Jersey City does not have a functioning Cannabis Control Board (CCB), clear policies on distance between dispensaries, or a cap on dispensaries. Key members of the CCB recently resigned from their volunteer positions. So, Cannabis Board meetings have not been occurring. Sources told Heady NJ there were issues with personnel and policies with City Hall favoring certain applicants. The owner of a recently opened dispensary said they were told by the City’s Department of Commerce they could open and come back for when they meet next at an unknown date.”
Seeing this, allow me to summarize the licensed cannabis policy and the process of application. The Cannabis Regulatory Commission (CRC) is the overarching body that sets the guidelines that licensed sellers must follow. Established by the CREAMM Act and launched on April 21st, 2021, they are responsible for regulating both the Medicinal Cannabis Program and the recreational cannabis program for adults 21 years and older. They are responsible for writing and enforcing the regulations that direct the sales, purchases, and business activities related to cannabis in NJ. However, the organization has had many backlashes over the years. American Civil Liberties Union (ACLU) – NJ published a statement in December of 2024 explaining that they are highly disappointed with the CRC on how it couldn’t live up to its promise to reinvest cannabis revenue into communities targeted by decades of marijuana criminalization, especially as the state before legalization, spent more than $143 million per year to enforce the criminalization of marijuana.
Historically, New Jersey has been in & out regarding the legalization of weed. A noticeable moment was throughout Chris Christie’s administration as governor of the state, the continued stigma with the fear of punishment for non-medicinal marijuana. Back in 2012, he vetoed a bill that would have decriminalized the possession of small amounts of marijuana. Even with the legalization of medicinal marijuana, Christie’s administration was adamantly against it. He stated in 2015 that, “Every bit of objective data tells us that it’s a gateway drug to other drugs. And it is not an excuse in our society to say that alcohol is legal so why not make marijuana legal. … Well … why not make heroin legal? Why not make cocaine legal? You know, their argument is a slippery slope.” Further doubling down that it’s blood money.
“As long as I’m governor of New Jersey, there won’t be legalized marijuana in this state,” Chris Christie, 2015. Well, guess who ain’t the governor of New Jersey anymore? As Governor Phil Murphy took office, he allowed the process of legalizing marijuana immediately. Recently, programs such as the Cannabis Training Academy, a free educational program that supports cannabis entrepreneurs interested in the NJ cannabis industry and applying for a license or joining the workforce. However, most question that factor of the legalization of home-grown marijuana in the state. So far, the act is illegal in New Jersey, but who knows?
So the market is explicitly with the recreational use for adults 21 and over. According to 2024 data from the NJ CRC, recreational cannabis sales hit historical highs during the 4/20 and Green Wednesday cannabis holidays. The biggest single day of statewide sales, and the busiest cannabis shopping day, was on Green Wednesday – the day before Thanksgiving Day. Sales on that day totaled $6,003,300, slightly surpassing 4/20 sales of $5,811,632. As of the end of the last official quarterly report in September, recreational cannabis sales had totaled $789,848,253, generating tax revenue of $43,290,543.
So who is profiting? Well, the answer is a bit more complex than that and this is where I credit most of the found information to Forbes. Whitney Economics owned by Bean Whitney stated multiplefactors in how the cannabis industry itself is rarely profitable to begin with. As the industry has a “minefield of risks”, many fails wouldn’t just be business failures, its personal wealth destruction.
From Forbes’ interviewer: “Operators cannot make money, regardless of how much (money) they actually generate,” Whitney says. “And it’s evidenced by the fact that 27.3% are profitable, meaning 70% are either breaking even, or they’re losing money. About a third of them are losing money. That’s not a sustainable marketplace.”
A survey created by the Minority Cannabis Business Association (MCBA) showed results indicating that an average of 33.7% of white operators in cannabis are profitable, and just 17.5% of their non-white counterparts are profitable in 2024. Due to the legal, social, and familial consequences caused by the prohibition of cannabis, especially concerning the War on Drugs and the actions of targeting and marginalizing communities of color. The effects end up dividing the communities further through rapid expansions of the cannabis markets, these markets prioritizing privileged elite which side-lines minorities, even those who are well-qualified for the career.