• 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

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem

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

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
LifestyleCannabis

In states like New York with legal cannabis, black market marijuana is a growing problem: ‘It really is a constant battle’

By
Guillermo Molero
Guillermo Molero
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Guillermo Molero
Guillermo Molero
and
Bloomberg
Bloomberg
Down Arrow Button Icon
July 24, 2023, 7:22 PM ET
Black market cannabis is a major problem for states where marijuana has been legalized.
Black market cannabis is a major problem for states where marijuana has been legalized. THIBAUD MORITZ/AFP via Getty Images
Add Fortune on Google for similar content.

One shipment was disguised as camera equipment. Another as shiitake mushrooms. 

Recommended Video

But when law enforcement cracked open crates to look closer, they discovered thousands of pounds of marijuana worth tens of millions of dollars.

The Oklahoma Bureau of Narcotics has twice this year caught massive caches of illegal weed packed in trucks heading to New York and New Jersey. 

On Wednesday, authorities raided a warehouse in Oklahoma City being used as a distribution hub for marijuana trafficking, seizing almost 7,000 pounds of marijuana worth almost $28 million. That followed a similar operation in April when they stopped about 7,000 pounds going in the same direction.

Mark Woodward, a spokesperson for Oklahoma’s Bureau of Narcotics, said activity in his state has soared as criminals are taking advantage of cheap land and legal loopholes to profit from the illegal trade.

“On any given day, there are shipments of marijuana going from Oklahoma farms to the black market all over the US,” he said.

New York is particularly enticing for the illegal cannabis business. That’s partly because of the problematic rollout of legal recreational marijuana, with critics saying excessive regulations and a complicated licensing process have stymied legitimate efforts. 

Illegal dispensaries have popped up all over the state, with New York City Mayor Eric Adams estimating the number operating in the Big Apple alone was about 1,500 in February. The state meanwhile has issued more than 200 licenses but only lists about 20 open dispensaries. 

In June, the state’s Department of Taxation and Finance and Office of Cannabis Management inspected 33 storefronts in New York, Ithaca and Binghamton, seizing at least 1,000 pounds of illicit cannabis worth over $11 million, according to Governor Kathy Hochul. Last week, New York police and state tax agents raided dispensaries in Lower Manhattan and more recently Manhattan District Attorney Alvin Bragg reached an agreement to ban 11 stores, mostly on the Upper West Side, from selling illegal cannabis products. 

Perfect Storm 

For all New York’s efforts, authorities still don’t have a good sense of where the weed is coming from. Cannabis sold legally in the state is typically grown within its borders and is subject to extensive regulations, driving up costs for cultivators and consumers alike.  

Oklahoma though has emerged as one of the simplest places to grow the crop. It legalized medical marijuana in 2018 and licenses to sell cost just $2,500. 

The regulatory framework is also far less stringent than in other states. That’s encouraged growers to move from places like California and Nevada — among the first to legalize recreational marijuana use — to Oklahoma, a trend Woodward said the state continues to see.

The state had more than 9,000 licensed cannabis farms by the end of 2021, exceeding the number in California, according to the New York Times. 

The amount got so high, Governor Kevin Stitt signed a moratorium on new growing, processing and dispensing licenses last year, which will run until August 2024. Voters also rejected the legalization of recreational marijuana in March. 

The state’s legislature tried to intervene further this year by imposing stricter limits on who could obtain medical marijuana cards and how much THC, the compound in cannabis that gets you high, could be in each serving sold. But Stitt vetoed the bill in June because those measures were paired with a delay on enacting higher licensing fees. 

“As illegal grow operations and bad actors continue to be the primary issue facing the industry, it is unwise to repeal changes designed to curb their participation in the market in exchange for improvement to other areas of the state’s program,” he wrote in his veto note for the bill.  

Oklahoma’s Bureau of Narcotics is working with its state counterparts in New York and other states, as well as the federal Drug Enforcement Agency, to clamp down on the illegal trafficking, said Woodward.

But he said they’re confronting the illicit activity every day.

“We’re either raiding a farm or a warehouse and shutting it down,” he said. “It really is a constant battle against these criminal organizations.”

About the Authors
By Guillermo Molero
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Lifestyle

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
  • TikTok icon
  • YouTube icon

Latest in Lifestyle

clark
North AmericaMedia
Ryan Clark found out he was fired live, mid-broadcast, on NFL Live as ESPN undergoes first major layoffs in 3 years
By Joe Reedy and The Associated PressJuly 22, 2026
4 hours ago
ls
Commentarybooks
Confessions of an award-winning AI memoirist — the ‘slop’ debate isn’t really about good writing, and you know it
By Luke StoffelJuly 22, 2026
6 hours ago
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
C-SuiteFood and drink
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
By Catherina GioinoJuly 22, 2026
10 hours ago
The American Heart Association has a new number for daily coffee—and a warning if you go over it
Successlifestyle
The American Heart Association has a new number for daily coffee—and a warning if you go over it
By Orianna Rosa RoyleJuly 22, 2026
10 hours ago
An open plain bagel with cream cheese smeared on a plate.
North AmericaImmigration
Seeds, schmear, sesame: How a bagel’s toasted crunch that became a reflection of America’s identity
By The Associated Press and Josh CornfieldJuly 21, 2026
20 hours ago
A ski worker in winter skiing gear strikes a pose in front of a ski slope in Lesotho.
Travel & LeisureDonald Trump
In Lesotho, the country’s only fully operational ski resort offers snowy slopes for Africa’s ski enthusiasts
By The Associated Press and Mogomotsi MagomeJuly 21, 2026
20 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
2 days ago
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
22 hours ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
1 day 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
2 days ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
1 day 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
4 days 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.