Maryland marks 1 year of legal recreational marijuana through pardons and explosive growth

BALTIMORE — Maryland raked in more than $14 million in taxes for marijuana sales within the first three months alone this year, and sales are growing as the state marks the first anniversary of legal recreational cannabis use.

The high life is good for Connor Whelton, who is one of the founders and CEO of ReLeaf, a marijuana dispensary on Cathedral Street in Baltimore. 

“First of all, I had a passion for the product, and I come from a time when it was heavily stigmatized,” Whelton said. “The use of this equaled you not being successful, and I wanted to challenge those misconceptions because I was meeting really fine people who used the product.”

Meeting consumers where they are

Whelton’s team came up with innovative ways to get the product to customers, from home deliveries to a walk-up window—or you can just browse the menu in the store. 

“I saw this incredible opportunity coming to Maryland and quickly went to work on it, and it feels like the blink of an eye later here we are,” he said. 

As the stigma over marijuana use wanes, Whelton is seeing a new customer base. 

“We are definitely seeing more first-time users, which is creating this infectious enthusiasm for people who come in and are just appreciative of being here, Whelton told WJZ. “And you’re also seeing more acceptance of people who would normally have never tried this as an option. Where they had surgery on their ankle, they’re not going to use an opioid. They’re going to try some gummies and see how that makes them feel.”

With recreational marijuana now legal in 24 states, the U.S. Drug Enforcement Administration is moving to reclassify the drug to a less dangerous category under the Controlled Substances Act.

This comes as daily marijuana users now outnumber daily drinkers for the first time ever, according to a report from researchers at Carnegie Mellon University. 

The change in preference is largely being driven by young people. 

Of people aged 18 to 24, 69% prefer marijuana to alcohol, according to a 2022 survey by New Frontier Data, a cannabis research firm.

One year later In Maryland 

Maryland legalized recreational use on July 1st, 2023. 

The excitement caused some to line up in anticipation, and the state has already seen recreational outpace medical cannabis purchases. 

“From last July until the end of May, the industry has done about $1 billion in sales. Now, we can confidently say this is a billion-dollar market,” Whelton said. 

Following the money

In April alone, the state recorded $63 million in recreational sales compared to $30 million in medical out of a total $462 million in overall sales so far this year. 

From January through March, Maryland collected $14.6 million in sales taxes, according to the comptroller’s office. 

The D.C. region is responsible for the biggest chunk, $6.7 million, followed by the Baltimore region at $3.7 million.

More than $4 million will be reinvested in lower-income neighborhoods most impacted by the War on Drugs. 

“We view it as one of the most successful market launches in the ten-year history of legal cannabis sales. Maryland sales have more than doubled since the adult-use market was launched,” said Ben Burstein, from Leaf Link, which runs a wholesale marketplace.

Retail prices In Maryland

Burstein said retail prices tend to be a bit higher in Maryland. The state dashboard says the median price per gram is $9.64.

“Back last summer, Maryland had the highest prices per unit in the entire country…That’s started to come down, but it’s still relatively high compared to most states,” Burstein said. “As you get more capacity, prices are going to continue to decline.”

Governor Moore’s pardons

Maryland recently made national headlines when Governor Wes Moore pardoned more than 175,000 people convicted of low-level possession charges. 

They included Shiloh Jordan, who lost his job at the time, but has since picked himself back up. 

“It felt crazy because I was like I’m not even a criminal, I could see if I was a bad guy doing bad stuff, but I’m like, this isn’t even my MO,” Jordan told CBS News. “…I felt defeated at the time…but when life gives you lemons, make lemonade. Now I’m here. I made lemonade.”

A program even aims to help those once convicted get jobs in the cannabis industry.

Equity in cannabis 

The state made equity a centerpiece of its licensing. 

Maryland became the first state in the nation to open a cannabis licensing round exclusively for qualifying social equity applicants in all license types. 

“Maryland is issuing social equity licenses. You have 150 stories that are going to come online,” Burstein said. “You have stores in all the major metro areas. You have pretty good coverage of the rural areas. In Maryland today, you have a state that’s No. 9 in total sales across the U.S. that’s only going to continue growing.”

New competition 

Whelton welcomes the competition as more dispensaries open. 

“That competition is a healthy competition because of the numbers,” Whelton said. “As a result, the product quality that you’re getting here is very high compared to some other states. Some states have so many licenses that nobody is making it, and the quality of product suffers or taxes are so high that you can’t overcome that and pay for keeping the doors open.”

Whelton said many licenses are operated by people who left other lives “to pour themselves into this, and it is complicated and challenging.”

He’s in it for the long haul as Maryland’s recreational cannabis industry celebrates a milestone first anniversary with high expectations for the future. 

“I wouldn’t say anyone has necessarily made it yet. We are making it. We are working on it actively, but again we are big believers in what Maryland is doing,” Whelton said.