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California is the largest cannabis market in the world, but the state has struggled with seemingly intractable problems since its adult recreational launch in 2016:
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High cultivation and excise taxes and a generally burdensome regulatory environment have hindered the formation of a vibrant legal market.
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Local municipalities were granted too much power to disallow retail dispensaries in their jurisdictions resulting in a severely under retailed market. There are 866 licensed dispensaries in California, serving a population of 38.9 million. There are over 500 dispensaries in Colorado, with a population of only 5.8 million.
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California had 7548 cultivation licenses, far more than any other state. Estimates suggest that the amount sold in the illicit market is more than double the amount sold in the legal market.
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