Subscribe to LexTalk to stay on top of today’s legal issue and trends.
Catapult Your Career |
Industry Insights & Trends |
Product Training & Tips
Marijuana today is an echo of yesterday's Prohibition. And like the beer companies of old, marijuana is poised for a Budweiser-sized explosion.
During Prohibition, the money-making mindset never ceased. Some “entrepreneurs” produced alcohol illegally; others patiently waited, preparing to capitalize on Prohibition’s repeal.
Eighty-five years later, history is repeating itself. But it’s not alcohol this time.
This time it’s marijuana.
Like the alcohol entrepreneurs of yesterday, today’s marijuana entrepreneurs are preparing themselves. Though illegal under federal law, some marijuana entrepreneurs are already collecting the capital needed to launch major, branded companies.
Imagine an Anheuser-Busch type company selling marijuana.
Imagine a billion dollar marijuana business growing into “The King of Pot.”
Actually, there’s no need to imagine it because it’s becoming a reality.
Marijuana is no longer relegated to the shady realm of under-the-table drug deals. You can already trade cannabis/hemp stocks for on the U.S. Marijuana Index. As states continue to legalize marijuana, the industry continues to grow at an extremely rapid rate. Early investors are seeing the returns, with the Index increasing 46% over last year.
Worldwide, cannabis farms are booming. These seven legal grow operations prove it. From tribal lands in the United States to operations abroad in Canada, Chile and Switzerland, growers all over the world are taking advantage of the massive market for legal marijuana.
States that have legalized marijuana are seeing massive returns in the form of sales tax. In just four days after marijuana became legal, Nevada earned around $500,000 in tax revenue. That’s just four days! According to the Las Vegas Sun, Nevada is projected to earn somewhere around $30 million in sales revenue by the end of the year. In Colorado, where marijuana has been legal since 2014, marijuana sales have surpassed $100 million for the past year.
Even with all of this growth, which according to Law Practice Today is “unparalleled since the dot-com era,” it can be difficult to find lawyers willing to represent marijuana companies. With marijuana still illegal under federal law, many lawyers are hesitant to help marijuana businesses. But these businesses can’t wait for the federal government to make marijuana legal. They need legal advice now. Some lawyers are staying ahead of the curve and are offering their services to these major marijuana businesses. Some firms even have dedicated cannabis law groups, like Canna Law Group and Dykma.
Like the alcohol pioneers of 1933, these law groups are gearing up for when the cannabis prohibition is lifted. Just as the alcohol industry took off post prohibition, with major brands selling across the globe, marijuana is primed and ready for its own explosive growth. Someday, marijuana brands will be as popular and recognizable as Budweiser and Corona. For some countries, states and businesses, that someday is more now than later.