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It cited strict new medical regulations passed in 2015 and the legalization of adult use in 2016, which is expected to reduce the levels of patient participation. Retail recreational marijuana sales in Colorado and Washington state last year were roughly a combined $1 billion (when adding medical marijuana sales the combined total regulated sales in Washington and Colorado reached $1.7 billion in 2015, with Colorado almost $1 billion by itself). Oregon figures appear to show the first month of adult use in January 2016 produced about $14 million in retail sales, outpacing the first-month sales from legal weed in Colorado and Washington. Also, there’s been downward pricing pressure on legal marijuana in Washington state and Colorado, and analysts expect Oregon to start to see it later this year when more retailers are allowed to sell recreational pot. Furthermore, there are reports of competition across state lines, including marijuana retailers in southern Washington facing increasing competition from Oregon, where pot taxes are lower and set to decline again later this year. ArcView’s report referred to “cross-border wars” across state lines and revealed that “immediately following Oregon’s market launch, Washington’s average daily cannabis revenues began to fall by almost the exactly same amount as they were once growing.” As for Alaska, the state plans to issue recreational licenses later this year.
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