The United States embraced marijuana legalisation as a progressive leap towards criminal justice reform, economic opportunity, and improved public health. Advocates argued that legal cannabis would virtually eliminate the black market, provide significant tax revenues, and ensure a regulated, safer industry for consumers.

But the reality hasn’t matched these ambitious promises. Across America, states grapple with unintended consequences such as thriving illicit markets, concerns over public health, and growing scepticism, even among previous supporters. Examining the state of legal cannabis uncovers a highly complex issue that raises more questions than it initially aimed to resolve.

Marijuana legalisation in the US is more than just a policy shift; it’s a social experiment with high stakes

Promises of Legal Cannabis vs Reality

States like Colorado and Washington began legalising recreational marijuana in the early 2010s with the general expectation of creating an orderly and profitable market, free from the chaos of illegal sales.

Proponents emphasised economic benefits, pledging significant tax revenues that could fund public services such as schools and healthcare. Colorado, for example, collected $135 million in marijuana tax revenue back in 2015. States also promised fair regulation and oversight, ensuring that only licensed dispensaries would control cannabis distribution, squeezing out illegal operators.

However, that isn’t what has unfolded. States like California and New York find themselves overwhelmed by black-market dispensaries and illegal sellers who evade taxes and undercut regulated businesses. For instance, New York City by itself is estimated to house around 8,000 unlicensed cannabis shops, compared to just 140 legal dispensaries. According to a 2025 report, “Without enforcement, cannabis businesses struggle to challenge noncompliant towns, sometimes resorting to lawsuits.” This highlights the ongoing regulatory challenges faced by the legal market.

This flood of unregulated marijuana brings various safety concerns, including products without proper testing or oversight. Despite public optimism, the boundaries between a legal, supervised industry and the illicit market remain blurred at best, disastrous at worst.

Rising Public Health Concerns with Legal Cannabis

One of the most troubling effects of marijuana legalisation in the US has been its impact on public health. Today’s cannabis industry delivers products far more potent than those available in the 1990s, with THC levels exceeding 20 per cent in some cases, compared to the 3–5 per cent potency common decades ago.

This increase in potency is linked to significant mental health risks, particularly for younger users. Research shows that heavy marijuana use, especially among teenagers, is associated with cognitive impairments, memory issues, and a higher risk of psychosis or schizophrenia. Schools in New York reported a 17 per cent rise in drug-related disciplinary incidents just one year after recreational marijuana was legalised. Vaping in school bathrooms has also been flagged as a growing trend among teenagers.

Driving under the influence of marijuana has also introduced worrying safety risks. For instance, a 2021 study from Colorado found a staggering 140 per cent increase in traffic fatalities involving drivers under the influence of cannabis over just six years. As noted by Johns Hopkins University, “Cannabis legalisation has benefits, such as removing the product from the illegal market so it can be taxed and regulated, but science is still trying to catch up with the long-term public health impacts.” This underscores the need for more comprehensive research and regulation.

Marijuana Legalisation Challenges Across States

New York’s Struggle with the Black Market

Although New York only recently entered America’s legalisation market, critics have already widely condemned it. Governor Kathy Hochul described the current state of cannabis regulation as “a disaster”. Illegal dispensaries have overrun the city, creating a sharp imbalance that makes legal businesses almost unsustainable.

Illicit vendors evade taxes while selling the same products at lower prices and bypassing strict safety regulations. Not only have they cut deep into the legal market’s profitability, but they’ve also made high-potency THC products accessible to underage users.

California’s Illegally Green Economy

California presents a similar narrative despite having legalised recreational marijuana as far back as 2016. A 2023 audit revealed that two-thirds of all cannabis sales in California came from illegal operators. Additionally, authorities in Los Angeles are increasingly reporting cartel-linked operations that mirror the very criminal networks cannabis laws sought to replace.

Without enough deterrents for illicit production, legal dispensaries remain hard-pressed to compete. Hefty compliance costs and high taxes make it nearly impossible to price-match illicit competitors.

Other Cases Around the Country

From Oregon to Michigan, states are finding that legalising marijuana hasn’t eradicated illegal operations. Instead, the black market has adapted and often flourished alongside legal businesses. Law enforcement struggles to address growing violations, highlighting just how deep the cracks in the system truly run.

Broader Implications for the United States

The marijuana legalisation debate isn’t just about regulating a market. It’s forcing America to confront larger questions about balancing public health, crime prevention, and revenue generation through policies like these.

Public sentiment remains largely supportive, with a 2023 Gallup poll showing 70 per cent of Americans favouring legalisation. However, experts argue the issue lies more in execution than intent. Policies often prioritise profits over public safety, sometimes allowing over-commercialisation to dominate spaces once envisioned for responsible governance.

For example, some states direct cannabis tax revenue to education and youth programmes, balancing societal costs more productively. However, this can’t offset the rising concerns about safety, crime, and health hazards linked to poorly regulated markets.

The Road Ahead for Marijuana Legalisation

The US experiment with marijuana legalisation is far from over, but cracks in its foundation have already shown the need for reassessment. Here are some ways forward:

• Stronger Regulation: Several experts advocate for a structure similar to alcohol laws, where THC potency is capped and products undergo strict safety evaluations.
• Reinforcing the Legal Market: Greater penalties for illegal operations could help shift market dynamics in favour of licensed businesses.
• Public Health Protection: Better education, advertising restrictions, and youth-focused outreach are urgently needed to address the health impacts of today’s high-potency cannabis.

Countries like Switzerland offer potential blueprints for reform. There, strict regulations prohibit profit-oriented commercialisation, relying instead on state-controlled models prioritising public welfare. Whether those lessons can translate to a country as complex as the US remains to be seen.

Source: Newsweek