New Retail Marijuana Rules May Push Pot Business Higher

DENVER (CBS4) - The recreational pot business is expected to grow rapidly now that new state laws, in effect Wednesday, allow retailers who didn't own medical marijuana shops to do business.

Until Oct. 1, only medical marijuana businesses could also sell retail pot.

The state issued 96 new licenses issued on Wednesday, but those seeking to open stores still need state approval.

The change should increase supply and the likelihood that prices will drop.

"We think it's going to go down. It's going to drop considerably because we're already at a low price point. But for the industry in general, I think the consumer is going to have a lot more choices at a lower price point," said Matthew Aiken, who owns three Sweet Leaf dispensaries in Colorado. Two more are planned.

The price for an eighth of marijuana generally runs about $25 to $50. An ounce sells for anywhere from $150 to $250.

It's hoped lower prices will put the black market out of business

"It's just going to keep trending down for me, and then I'm going to have to get into some kind of employment," a dealer, who wanted to remain anonymous, told CBS4 earlier this summer.

The rule changes will also mean more tax revenue, the head of the Marijuana Industry Group said.

"As more of these stores open up, they're going to get more and more of the share of market and push the black market out. That could mean a lot more tax revenue," Mike Elliot said.

Aiken says he thinks competition is good for the industry.

"Now that you're allowed pure competition, we welcome it, and I think it's going to make for better operations and a better end product," Aiken said.

Also changing on Wednesday were rules that governed how marijuana edibles can be sold and packaged.

More Marijuana Legalization Stories