83°F
weather icon Partly Cloudy

Nevada marijuana sales blow away projections in first year

Nevada dispensaries sold nearly $425 million worth of recreational marijuana and pulled in nearly $70 million in tax revenue in the state’s first full year of sales, officials announced Tuesday.

Including recreational and medical marijuana as well as marijuana-related goods and accessories, Nevada stores eclipsed a half-billion dollars in sales, just under $530 million, according to figures released Tuesday by the Nevada Department of Taxation.

That dwarfs first-year sales seen in other states, and significantly outpaced Nevada’s own projections for the budding industry.

Bill Anderson, executive director of the Tax Department, said that the industry “has not only exceeded revenue expectations, but proven to be a largely successful one from a regulatory standpoint.”

“We have not experienced any major hiccups or compliance issues,” he added. “As we move into fiscal year 2019, we expect to see continued growth in the industry by way of additional businesses opening up, and we expect revenues to continue to be strong.”

First-year sales were about 60 percent higher than the state’s predictions of $265 million, and significantly outpaced all other states that have legalized the sale of recreational marijuana.

Colorado, the first of the nine states to legalize retail pot, sold $303 million in adult-use marijuana in 2014, its first full year, while Washington sold $259 million and Oregon sold $241 million.

The $69.8 million the state collected from the combined taxes on marijuana was about $20 million more than state officials had predicted.

By comparison, Nevada’s levy on alcohol has yield about $49 million in each of the last two fiscal years. That means that in after just its first year, Nevada’s marijuana industry is already a bigger revenue generator than alcohol.

Nevada’s first year of sales was relatively smooth in other ways, with none of the major problems — like hash oil explosions, pesticide contamination and oversaturation of the markets — that have plagued other marijuana states.

But Riana Durrett, executive director of the Nevada Dispensary Association, cautioned that just because the industry got off to a hot start, high sales numbers are guaranteed to continue.

Durrett said that shop owners are worried that some of the pitfalls, especially oversaturation and black market sales, pose a risk to the stability of Nevada’s market.

“(Owners) are glad that it’s working, and that we have a healthy market. But they’re very weary that if you don’t protect the market, it could go away or we could have a huge dip.”

Despite that, the state could possibly more than double the number of licensed dispensaries over the next few years — to a maximum of 136. It may be difficult, however, for Nevada to quickly reach the $1 billion threshold in annual recreational marijuana sales that Colorado and Oregon have hit since fully legalizing the drug in 2014.

State Sen. Tick Segerblom, one of the biggest cannabis supporters within the Nevada Legislature, said legalizing marijuana consumption lounges could help Nevada’s market continue to grow. Pot use is banned at all gaming properties and in public, leaving tourists little in the way of options for consumption.

“You can’t encourage people to come to Nevada to buy marijuana, but tell them they can’t use it or take it home,” he said. “I think the hypocrisy is killing us.”

Contact Capital Bureau Chief Colton Lochhead at clochhead@reviewjournal.com. Follow @ColtonLochhead on Twitter.

Don't miss the big stories. Like us on Facebook.
Politics Videos
Clark County 2019 Election Results - Video
The 2019 Elections wrap up in Clark County including an upset in the Boulder City Mayor race.
Olivia Diaz talks about her win in Ward 3 - VIDEO
Las Vegas City Councilwoman-elect Olivia Diaz talks about her election win in Ward 3 and what lies ahead for her.
Greene discusses Read by 3 and Opportunity Scholarships - VIDEO
The Nevada Legislative Session is over and the results are mixed for Nevada students, according to Tom Greene, Senior regional legislative director, Excel in Ed in Action.
Bernie Sanders visits Las Vegas
Sen. Bernie Sanders made a stop at Roy W. Martin middle school on Thursday, during his campaign trail.
Kamala Harris campaigns in Las Vegas
Democratic Sen. Kamala Harris castigated President Donald Trump’s merit-based immigration plan, saying it was “short-sighted” and overlooked the cultural significance of family, during a campaign stop in Las Vegas. “We cannot allow people to start parsing and pointing fingers and creating hierarchies among immigrants,” Harris told Asian Pacific Islander leaders at a Chinatown restaurant, one of two appearances she made Thursday.
The Right Take New Education Funding Plan - VIDEO
On Monday, Senate Education Committee chair Mo Denis, D-Las Vegas, released a new education funding formula. For years, many Democrat politicians have criticized the current education funding formula, called the Nevada Plan. They claim it’s old and outdated. Their biggest beef is that it doesn’t allocate more money for students who are English Language Learners or live in poverty. The theory is that it’s harder to educate those students and so they need additional services, which costs additional money.
Kamala Harris campaigns in Nevada
California Senator Kamala Harris meets with One APIA Nevada, a nonprofit organization that advocates for policies empowering Asian Pacific Islander Nevadans. (Michael Quine/Las Vegas Review-Journal)
Ben Carson talks housing (Audio only)
Ben Carson discusses housing with the Review-Journal editorial board on Thursday. (Audio only)
Ben Carson visits the RJ (Full Audio Only)
Ben Carson discusses housing with the Review-Journal editorial board on Thursday. (Audio only)
Former Vice President Joe Biden campaigns in Nevada
After campaigning at the International Union of Painters and Allied Trades District Council 16 in Henderson, former Vice President Joe Biden spoke with the Review-Journal.
Student serenades Mayor Carolyn Goodman at swearing in
Students from the school she founded, The Meadows School, serenaded Las Vegas Mayor Carolyn Goodman during a swearing in ceremony for her third and final term. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Al Gore Speaks At UNLV About Climate Change - Video
Former Vice President of the United States Al Gore talks to an audience at UNLV about the effects of Climate change and how to switch to renewable sources of energy.
Forum on Wages and Working People Highlights - VIDEO
Presidential candidates Elizabeth Warren, Beto O'Rourke, Kamala Harris, Amy Klobuchar, Julian Castro, and John Hickenlooper speak in Las Vegas, Nevada.
Nevada Politics Today Valerie Weber - VIDEO
Valerie Weber sits down with Victor Joecks to discuss her policies and why she is running for Ward 2 of the Las Vegas City Council.
Cory Booker speaks at UNLV
US Senator Cory Booker speaks at UNLV during a Young Democrats meet and greet on Thursday, April 18, 2019. (Mat Luschek / Review-Journal)
May-Brown describes why some with disabilities need the subminimum wage - VIDEO
Eliminating the subminimum wage will end training and work opportunities for some members of the disabled community. Instead of doing something productive, they would be relegated to adult day care. That’s according to Tracy May-Brown, Opportunity Village’s director of advocacy, board and government relations.
Commission’s decision will delay Red Rock Canyon development
The Clark County Commission Wednesday rejected a developer’s request to approve a preliminary plan for 3,000 homes overlooking Red Rock Canyon before a federal agency grants permission for a roadway leading to the site.
Clark County commissioner calls on landlords to bring properties up to code
Clark County Commissioner Tick Segerblom has called on landlords in older parts of the valley to bring their properties up to code and keep them well-maintained or face the prospect of inspections, fines and citations. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Harry Reid speaks out against anti-Semitism
Unnerved by the rise in anti-Semitic hate speech and the general pervasiveness of bigotry, including in Nevada, former U.S. Sen. Harry Reid organized an educational forum at UNLV on Thursday as part of his call to unite people against it. (Shea Johnson/Las Vegas Review-Journal)
President Trump speaks to the Republican Jewish Coalition in Las Vegas
President Donald Trump spoke at the Republican Jewish Coalition’s National Leadership Meeting in Las Vegas and updated on Israeli relations. (Heidi Fang/Las Vegas Review-Journal)
Trump says border wall will have 'hundreds of miles' built by end of next year
President Donald Trump spoke at the Republican Jewish Coalition’s National Leadership Meeting in Las Vegas and discussed the progress of the border wall and the current relations there. (Heidi Fang/Las Vegas Review-Journal)
Protesters disrupt Trump's speech
Just as President Donald Trump started to make his opening remarks during his appearance at the Republican Jewish Coalition’s National Leadership Meeting, protesters disrupted his speech. (Heidi Fang/Las Vegas Review-Journal)
Roerink On The Problems With Taking Water From Eastern Nevada - Video
The Southern Nevada Water Authority wants to take billions of gallons of water that doesn’t exist from Eastern Nevada via a pipeline that would cost ratepayers $15 billion. Doing so would devastate the wildlife and people who live there. That’s according to Kyle Roerink, executive director of the Great Basin Water Network, which opposes the pipeline.
Las Vegas Election Night Wrap-Up
The Review-Journal's Politics and Government Editor, Steve Sebelius, wraps up election night. (Mat Luschek / Review-Journal)
Olivia Diaz Speaks To Ward 3 Supporters After Primary Election - Video
Olivia Diaz speaks to her supporters at a election party after results started coming in for the Ward 3 primaries.
Oscar Goodman Speaks On Behalf Of Mayor At Primary Win (edited)
Oscar Goodman spoke Tuesday night on behalf of his wife, Carolyn, who won the mayoral primary election. (Mat Luschek / Review-Journal)
Oscar Goodman Speaks On Behalf Of Mayor At Primary Win (Full)
Oscar Goodman spoke Tuesday night on behalf of his wife Carolyn, who won the mayoral primary election. (Mat Luschek / Review-Journal)
Gun Debate Shows Limits Of Government - Video
On Monday, the Assembly and Senate Judiciary Committees held a joint hearing on Assembly Bill 291. It would ban bump stocks and allow local governments to pass additional restrictions on firearms.
Lucy Flores speaks out about Biden incident
Former Nevada assemblywoman, Lucy Flores, expresses her feelings about an incident with former Vice President Joe Biden in 2014. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Harry Reid takes the stand in injury lawsuit
Former U.S. Sen. Harry Reid took the stand on Thursday in the product liability lawsuit brought against the makers of a resistance exercise band that Reid blames for blinding him in one eye.
Jurors hear opening statements in Reid personal injury trial
Opening statements were made on Tuesday in the product liability lawsuit brought by Harry Reid against against the makers of a resistance exercise band that Reid blames for blinding him in one eye.
Mayor Goodman delivers Meals on Wheels
Mayor Carolyn Goodman delivers Meals on Wheels to seniors on March 26, 2019.
Las Vegas City Council Ward 1 race
Candidates for Las Vegas City Council Ward 1. (Shea Johnson/Las Vegas Review-Journal)
Beto O’Rourke campaigns in Las Vegas
Democratic presidential candidate and former Texas congressman Beto O'Rourke addresses attendees during a campaign stop at Arandas Taqueria in Las Vegas on Sunday, March 24, 2019. (Chase Stevens/Las Vegas Review-Journal)
Beto O'Rourke House Party in Las Vegas
Democratic presidential candidate Beto O’Rourke delivered a message of unity inside a Las Vegas living room Saturday night, outlining a mission to bridge the divide in a polarized America and rally behind “big defining ambitions that we have in common.” (Shea Johnson/Las Vegas Review-Journal)
Presidential candidate Kirsten Gillibrand talks at Atomic Liquors
Democrat presidential candidate Kirsten Gillibrand talks to her supporters at Atomic Liquors.
Presidential candidate Gillibrand meets with UNLV Immigration Clinic student attorneys
Democratic presidential candidate Sen. Kirsten Gillibrand, D-N.Y., meets with UNLV Immigration Clinic student attorneys at her first stop in Nevada as a candidate Thursday, March 21, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sen. Catherine Cortez Masto promotes the Rebuild America’s Schools Act
U.S. Sen. Catherine Cortez Masto, D-Nev., co-sponsor of the Rebuild America’s Schools Act, speaks at Hoggard Elementary School in Las Vegas to promote the bill that would provide $100 billion for infrastructure improvements at schools across the country. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Scholar Max Eden on how restorative justice decreases student achievement - VIDEO
Across the country, restorative justice is lowering test scores and increasing the number of students who feel unsafe at schools. That’s according to Max Eden, a senior fellow with the Manhattan Institute, who recently released a study discipline reform.
THE LATEST
Officials raid 247 Colorado homes growing black market pot

Authorities said Friday they raided hundreds of black market marijuana operations in Colorado that flouted the state’s cannabis law by growing tens of thousands of plants in Denver-area homes and selling the drugs out of state.

Governor announces plan to legalize marijuana in Illinois

Illinois Gov. J.B. Pritzker said Saturday he’s reached an agreement with key lawmakers on a plan to legalize recreational marijuana in the state starting next year.