Economic Benefits of Legalized Adult-use Marijuana in Nevada

Posted on by & filed under Nevada by the Numbers Blog.

This week the consultant team of RCG Economics and the Marijuana Policy Group (MPG) released an economic & fiscal benefits study that was commissioned by The Coalition to Regulate Marijuana Like Alcohol. The purpose of the Study was to analyze the potential economic and fiscal benefits of the marijuana ballot initiative on the Nevada economy (aka the Initiative to Regulate and Tax Marijuana akaQuestion 2″) should it pass in November.

A recap of the study’s findings is provided below. All dollar figures are in 2016 dollars to facilitate simple comparisons.

You can also review the entire study here.

Study Findings

Estimated Annual Marijuana Market Sales

$393,711,000 (2018)

$485,017,000 (2024)

Estimated Percent of Sales to Tourists (by sales volume)

54%

Projected Annual Economic Benefits of Adult-use Marijuana Market (2024)

New direct full-time jobs: 3,298

New total full-time jobs: 6,208

New direct labor income: $111,554,000 

New total labor income: $260,732,000

New direct economic activity: $485,017,000

New total economic activity: $1,130,089,000

Projected Total State Fiscal Benefits of Adult-use Marijuana Market (2018-2014)

Tax revenues (sales, use, excise, commercial, payroll): $464,005,000

The consultant team relied on data provided by MPG,

various state and local government agencies, 

the U.S. Bureau of Economic Analysis, and

National Survey on Drug Use and Health.

In case you missed it, here’s the Las Vegas Sun story on the study and the related press conference this week by The Coalition to Regulate Marijuana Like Alcohol. 

Please do not hesitate to reach out to us with questions and again, you can read the entire study here.