While Massachusetts is slow to implement its recreational sales program after the 2016 election, Nevada implemented its plan very quickly, starting selling recreational use cannabis as early as July 2017.
This was quickly accepted by consumers, as more than $200m was already generated in the first six months. The brilliant start was despite difficulties among manufacturers in meeting the enormous demand and, at the same time, the Test requirements.
Only a limited number of companies could obtain corresponding licenses. In Nevada, only established medical cannabis companies were able to grab one of the coveted licenses during the first round of applications, which were also limited to 172. In total, the state of Nevada released 61 licenses, roughly equivalent to the 64 licenses already issued earlier. 31 licenses alone went to Clark County in Las Vegas.
According to estimates by BDS Analytics, the market in Nevada grew significantly faster than expected in 2018, reaching revenue of about $580 million, as opposed to the $369 million initially thought. In 2019, the market is expected to grow to more than $650 million due to stable high demand and the launch of new licensed companies.
Tourism remains a positive driver of demand for Nevada’s cannabis market. Over the past decade, more than 40 million tourists a year have visited Las Vegas. That’s roughly equivalent to 13 times Nevada’s state population.
Canaccord’s experts believe cannabis use is a complement to the wide range of entertainment on offer to Las Vegas. Canaccord analysts believe it will allow cannabis companies with their brands in Las Vegas to market their brands beyond state lines through exceptional retail stores or high-end consumer products. According to analysts, the Nevada market will grow to nearly $1 billion by 2022.