LAS VEGAS, Nev. (FOX5) – Illegal cannabis sales from criminal networks have been cutting into profits at legal establishments across Nevada, according to regulators.
Regulators presented the numbers to a Senate committee, this week, as lawmakers discussed avenues for enforcement and ways to discourage the illegal market with proposed Assembly legislation.
Recreational marijuana has been legal in Nevada since 2017.
From 2022 to 2024, total reported profits have decreased statewide. Cannabis Compliance Board officials report decreases due to expanded marijuana access, nationwide; illegal sales also contribute to less profits.
The drops ultimately impact education: every year, less tax revenue gets transferred to the state education fund.
A 2023 commissioned study found that 21% of all marijuana sales across Nevada are illegal amounting to $242 million in profits.
“Deliveries are in the open… what has to happen to shut that down?” asked State Senator John Steinbeck of Clark County, as lawmakers ask for solutions.
The UNLV Cannabis Policy Institute explains that criminal enterprises are behind the illegal sales, and they are often targeting tourists on the Strip.
“There are large, sophisticated operations. A large amount of illegal product is brought from California. There are entire farms that are illegal,” said Riana Durrett of the Institute.
Durrett said those illegal operations often advertise sales online and on websites, promising delivery to the Las Vegas Strip; sales and deliveries are banned on the Strip.
Unwitting tourists may order from these websites, posing health and safety dangers.
“You don’t know if there’s pesticides or heavy metals [in the marijuana]. There is has been a significant amount of violent crime associated with even just low-level cannabis deals,” Durrett said.
Who can crack down on these criminals?
The Cannabis Compliance Board tells lawmakers, agents oversee licensed establishments and primarily launch investigations based on complaints.
“Some of the top recommendations would be identify which agency is primarily responsible,” Durrett said.
Proposed Assembly legislation would add more oversight to the Department of Public Safety, and also allow delivery to the Strip but not to establishments with gaming.
Copyright 2025 KVVU. All rights reserved.
