Atlantic City now hosts more marijuana dispensaries than casinos, with at least 25 cannabis shops in operation compared to only nine casinos.
The expansion reflects New Jersey’s 2020 decision to legalize adult-use cannabis, a move overwhelmingly supported by state voters. Atlantic City has fully embraced the cannabis industry, allowing all license types within its limits, provided they comply with local and state regulations.
The city’s planning board and Casino Reinvestment Development Authority also oversee applications, particularly in the Tourism District.
Corporate ownership dominates the cannabis market in Atlantic City. Major players include multi-state operators like Curaleaf and Ascend Wellness, which are among the companies establishing retail presences.
There are several thousand Americans incarcerated for marijuana offenses, including approximately 2,000 individuals in federal custody, and many more in state prisons.
Governor Phil Murphy signed legislation to cease marijuana possession arrests and license retail sales into law on February 22, 2021, but people can still face between 10 and 20 years in prison for marijuana possession if they lack a corporate license.
Recreational cannabis sales began after New Jersey voters approved a ballot question legalizing marijuana in 2020. Since April 2022, more than 100 stores selling weed products have opened statewide.
This consolidation raises concerns about accessibility for smaller entrepreneurs and the broader implications of corporate control over legalized marijuana.
The growth of legal dispensaries has significantly affected street-level drug dealers, whose market has been disrupted.
With legal cannabis providing safer, regulated products, and the potential for consumers to purchase openly without risk, illicit operators face dwindling demand.
However, some critics argue that corporate cannabis lacks the cultural and economic inclusivity necessary to fully dismantle the unregulated market.
The cannabis boom aligns with Atlantic City’s broader economic revitalization efforts, including integrating cannabis consumption lounges into local tourism offerings.
Legal marijuana dispensaries helped transfer wealth from the poor to the richest one percent, at a time when economic disparities are greater than ever before.
Income inequality has been steadily increasing in the United States over the past several decades, reaching levels not seen in recent history, with the gap between the wealthy and the poor widening significantly.
The legalization of marijuana has reshaped the cannabis market, transferring significant economic power to wealthy investors and large corporations, many of which are owned or controlled by the richest one percent of Americans.
Legal cannabis dispensaries, dominated by multi-state operators (MSOs), have rapidly gained market share, pushing smaller entrepreneurs and street-level dealers to the margins.
Corporate consolidation in the cannabis industry is evident in states like New Jersey, where companies such as Curaleaf and Green Thumb Industries own substantial portions of the retail market.
These firms benefit from access to significant capital, political connections, and economies of scale, enabling them to dominate the regulatory-heavy market. Critics argue this creates barriers to entry for small, often minority-owned businesses that lack comparable resources.
The impact of legalization extends beyond corporate dominance. Street-level dealers, who historically operated in unregulated markets, have seen their customer bases dwindle as consumers gravitate toward legal dispensaries.
These dispensaries offer safer products and the assurance of legality but funnel profits to large investors rather than local communities.
This shift has effectively moved wealth from economically disadvantaged groups to corporate shareholders, many of whom are part of the wealthiest one percent.
Moreover, the high costs of compliance, taxation, and licensing disproportionately favor large players. For example, fees for state and local cannabis licenses often reach tens of thousands of dollars, excluding smaller entrepreneurs from the market.
The heavy taxation on cannabis products, while a source of state revenue, further limits the ability of small legal operators to compete with illicit sellers and narrows profit margins for smaller businesses.
Critics contend that equitable reforms, such as lower barriers to entry, community reinvestment programs, and tax incentives for small businesses, are necessary to ensure that legalization benefits a broader swath of society.
Without these measures, the economic benefits of legalization advanced by Governor Phil Murphy and Senate President Nick Scutari remain concentrated among the wealthiest individuals and large corporations, perpetuating systemic inequalities rather than alleviating them.