Why do cannabis black markets persist in US states where recreational use is legal?

The prime reason black markets continue to operate in US states where recreational cannabis has been legalised is the issue of licensing. Although many point to tax rates driving legal prices higher than those on the illicit market, access plays a bigger role than price, according to experts.

The exact size of recreational black markets is inevitably difficult to determine. And much production activity appears in fact to be aimed at other markets, where recreational cannabis remains prohibited.


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