• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
Politics

Legal Marijuana Sales May Spark Interstate Tension in the Midwest

By
Kathleen Foody
Kathleen Foody
,
David Eggert
David Eggert
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Kathleen Foody
Kathleen Foody
,
David Eggert
David Eggert
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
December 30, 2019, 9:30 AM ET
Add Fortune on Google for similar content.

Retailers legally selling marijuana for the past month in Michigan say they have drawn customers from surrounding Midwestern states where the drug remains illegal and, as Illinois prepares to joins the recreational market on Wednesday, officials are renewing warnings to consumers against carrying such products over state lines.

The dynamic is familiar for states on the West and East coasts where the sale and use of marijuana has been broadly allowed since Colorado’s market opened in 2014, despite a federal ban that created a patchwork of legal and cultural snares. Nebraska and Oklahoma went so far as to file an unsuccessful lawsuit against Colorado, arguing that its marijuana law would have ill effects for surrounding states.

In the years since, the industry has wrestled with questions over companies’ obligation to pay federal income taxes or follow laws on employee safety. Other thorny issues confronted state regulators, who were forced to determine suitable pesticides for growing cannabis plants, and which ingredients were safe to include in products meant to be eaten or burned. That terrain is usually reserved for federal agencies.

The tensest point, though, remains the illegal market that has survived in states with legal cannabis markets. Some of that product comes from outside the legal systems tracked closely by states’ regulators, while other states have struggled to keep “diverted” legal marijuana from bleeding into the illegal market at home or in far-flung states.

Data also suggests that some customers will cross state lines in search of state-licensed marijuana retailers, despite warnings that it’s illegal to bring the product back home.

The start of legal sales in Michigan on Dec. 1 and in Illinois on Jan. 1 brings that same climate to the Midwest, where some neighboring states allow limited marijuana use for medical purposes. But none other has moved to permit recreational use.

States often differ in the regulation of contentious issues, including guns, speed limits and the drinking age. But Sam Kamin, a professor of marijuana law and policy at the University of Denver, said interstate accusations about the effect of marijuana sales on legal states’ neighbors are likely to linger unless federal law changes.

“Supply and demand tells us it’s going to be a constant thing,” Kamin said. “Regulations can only do so much and once product leaves a state, it ceases to be a regulatory problem and becomes a criminal one.”

Illinois is the 11th state to broadly allow marijuana’s use and sale, shrinking early states’ market advantage and ability to draw tourists. Industry analysts expect “canna-tourism” will remain popular in some places, such as Las Vegas, but that most companies trying to survive in an expensive, challenging industry must build a local customer base.

“Nonresident demand is not going to be the primary driver of revenue in these Midwestern states,” said John Kagia, chief knowledge officer at the industry analytics firm New Frontier Data. “Local consumers will be that primary driver.”

Kagia said available data on nonresident buyers suggests the percentage of traveling shoppers varies dramatically between states. One Colorado study found that about 9% of total cannabis product demand came from visitors to the state, while New Frontier Data estimates that the share of purchases by visitors in Nevada is about 25%.

In Michigan, where $4.7 million of recreational marijuana was sold in the first three weeks of December, regulators do not know how much was bought by out-of-state customers. But shops say business has been brisk, particularly from neighboring Ohio and Indiana and nearby Illinois.

“There’s been people from all over,” said Bart Kupczyk, co-owner and director of retail at Ann Arbor-based Greenstone Provisions, one of 23 Michigan retailers licensed for adult-use recreational sales. “Ann Arbor is close to Ohio. It’s a destination city in its own right as a fairly well-known college town.”

Some 45 miles (70 kilometers) to the south in Morenci, a town of 2,100 people along the Ohio border, a dispensary has reported that a majority of its customers hail from Ohio, where only medical marijuana is legal. Another retailer in Morenci secured its state license last week.

“It is important for residents of Ohio and non-residents traveling through the state to understand possession of marijuana remains a criminal violation in Ohio, even if it is purchased legally in another state which permits recreational use,” said Staff Lt. Craig Cvetan, public affairs commander for the Ohio State Highway Patrol.

Illinois marijuana companies said they have trained employees to remind non-residents that their products cannot legally be transported across state lines and can only be consumed in private residences or hotels that permit it. Cities can decide to allow marijuana consumption at tobacco shops or dispensaries, but none will have rules in place by January, said Pamela Althoff, executive director of the Cannabis Business Association of Illinois.

“If you want to enter into Illinois and participate in consuming cannabis, you need to be responsible and you need to know the law,” she said. “Just like alcohol, this should not be something you plan to consume and then get back in the car.”

Nonresidents can purchase less marijuana than Illinois residents under the state’s new law, and law enforcement in surrounding states have announced plans to strictly enforce their standing restriction on marijuana. Michigan’s single-transaction limit is the same for residents and nonresidents.

At Green Thumb Industries’ five “Rise” dispensaries licensed to sell recreational products in Illinois, employees have been trained to remind nonresidents customers that they can’t bring marijuana products home and to warn them not to drive after consuming, said Dina Rollman, the company’s senior vice president of government and regulatory affairs.

“We’re most focused on serving the people of Illinois, but we recognize that we’re surrounded by states that have not legalized cannabis for recreational use,” Rollman said. “Our focus is just on education for those consumers, so that we can be compliant.”

More must-read stories from Fortune:

—How the UN’s climate efforts could change the business world
—Why thousands of foreign nationals receive military training on U.S. bases each year
—What is election hacking—and can it change who wins?
—Remember Hawaii’s false missile alert? This bill aims to prevent it from happening again
—2020 Crystal Ball: Predictions for the economy, politics, technology, and more
Get up to speed on your morning commute with Fortune’s CEO Daily newsletter.

About the Authors
By Kathleen Foody
See full bioRight Arrow Button Icon
By David Eggert
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

Trump to impose 50% tariffs on most Canadian goods, invoking the ‘nuclear option’ that could unleash a new wave of economic chaos and inflation
EconomyTariffs
Trump to impose 50% tariffs on most Canadian goods, invoking the ‘nuclear option’ that could unleash a new wave of economic chaos and inflation
By Josh Boak and The Associated PressJuly 20, 2026
5 hours ago
President Donald Trump walks down the steps from Air Force One.
PoliticsDonald Trump
Trump admin attempted to uncover phone records of NYT journalists and sources related to coverage of Qatari-gifted Air Force One
By The Associated Press, Eric Tucker and Jocelyn NoveckJuly 20, 2026
6 hours ago
Alaskan pilot Ken Jouppi sits in an aircraft hanger in front of a plane.
LawSupreme Court
A passenger brought a 6-pack of beer on an Alaskan pilot’s plane. He now has to defend his plane’s seizure in front of the Supreme Court
By The Associated Press and Michael KunzelmanJuly 20, 2026
7 hours ago
Blue Owl Capital owns about a third of the Freedom Fuel properties: A look inside the $3.47 gas chain
North AmericaDonald Trump
Blue Owl Capital owns about a third of the Freedom Fuel properties: A look inside the $3.47 gas chain
By Brian Slodysko, Michael Biesecker and Josh BoakJuly 20, 2026
7 hours ago
A 13-year-old teenage boy looks at an iPhone screen displaying various social media apps.
PoliticsSocial Media
French President Macron backs effort to ban kids under 15 from social media before departing office next year
By The Associated Press and Samuel PetrequinJuly 20, 2026
8 hours ago
jd
PoliticsWhite House
JD Vance becomes first sitting vice president to welcome a child in office in over 150 years
By Darlene Superville and The Associated PressJuly 20, 2026
14 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
10 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
14 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
2 days ago
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
Future of Work
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
By Sarah GlodekJuly 20, 2026
20 hours ago
Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard
AI
Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard
By Aaron Walayat and The ConversationJuly 19, 2026
2 days ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
17 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.