A bellwether state for marijuana legalization is showing some encouraging effects of a liberalized regime. According to a report in that state's Bend Bulletin newspaper, citing data sourced from regulator the Oregon Liquor Control Commission, total revenue from in-state dispensaries increased by $145 million on a year-over-year basis to land at $793 million in 2019. In percentage terms, that rise was 22%.
According to the article, that take should have generated over $110 million in tax proceeds for the state.
Of that $793 million, nearly $204 million -- or almost 26% -- derived from Multnomah County. This is home to the most populous city in the state, Portland.
Healthy sales were also reported in the counties bordering Idaho. Unlike Oregon's other neighbors, Washington, California, and Nevada, Idaho prohibits both medical and recreational use. A report issued last week by the Oregon Office of Economic Analysis had the following interesting tidbit: "[I]n things you cannot make up, Oregon sales per adult along the Idaho border are 420% the statewide average."
Considered a progressive state, Oregon was the first to decriminalize small amounts of the drug (in 1973), and one of the first to sanction its use for medicinal purposes. Its legalization of recreational cannabis came into force in 2015.
Many small and large cannabis operators are active in Oregon. Among these are Acreage Holdings (ACRGF), which opened its first cultivation facility in the state last month. Acreage Holdings is on the hook to be acquired by marijuana major Canopy Growth (CGC -3.53%) when (and if) cannabis is legalized by the federal government.
Regardless, Canopy Growth's Tweed brand is currently being grown under license in the Acreage facility, located in the city of Medford.
Both Acreage and Canopy Growth stocks closed down on Tuesday.