It stands to reason some people are going to be making a lot of money once recreational marijuana becomes legal in Canada . Who stands to benefit? Who will be on board the gravy train? I think it is safe to say that the government, dispensaries, and the stock market are all on board. What kind of revenue are we looking at?

man standing beside a train with cash flying around

How the Government Benefits

According to Forbes, global marijuana spending is expected to hit $57 billion by 2027. Adult use of recreational marijuana will cover approximately 67% while medical will be around 33%.

Investors in Canada are ready to pour billions of dollars into public equity investments.

The Canadian government plans to tax marijuana sales at $1 a gram or 10% of the product price – whichever is greater. Sales will also be subject to the GST/HST sales tax. Estimations predict that the market here in Canada could be worth up to $18 billion a year. So we are looking at a whopping $3.6 billion in taxes for the federal government and the provinces – the split would be 25/75. Also, if the Federal government’s portion is more than $100 million a year, the excess will go to the provinces.


At the moment, it is unclear how many dispensaries are operating across Canada due to the fact that many are operating illegally. However, there appears to be very little the authorities can do about the illegal ones. For example, one particular dispensary in Toronto, the California Cannabis, has been visited several times by Toronto police; signage has been removed as well as their display cabinets. Raking in almost $7,000 a day, they can afford to literally set up shop the very next day, with new equipment such as monitors and phone lines for wifi.

Kendra Stanyon who is a criminal defense lawyer, claims that almost 90% of former dispensary employees walk! Let’s face it, even with legal fees and the police confiscating their equipment, it is still a lucrative business.

According to Aaron Salz, a financial analyst, he estimates that close to $500 million sales per year are attributed to Canadian marijuana dispensaries.

Marijuana Industry and Banking

It is worth noting here that while some dispensaries are very lucrative – a legitimate one in Vancouver reportedly had sales of $3,000,000 last year – it is still difficult, if not nearly impossible, to have a bank account! Why? Because many Canadian banks do not see it as legal, even with the law going into effect this month.

This poses a potentially high risk – having all that cash on hand to pay your bills as well as your employees – and makes your business very vulnerable and wide-open to criminals intent on robbery.

In regard to CRA, you also lose out on legitimate business expenses.

The Stock Market & Recreational Marijuana

The stock market is already booming in Canada and with legalization set to go into effect on October 17, it could likely explode.

During the first half of 2018, companies with marijuana stocks that trade publicly raised $3.29 billion. Privately held companies raised $1.04 billions. Cultivation and retail outfits brought in more than $2.5 billion.

The New York Stock Exchange

Canada’s Latest Involvement

LivWell which has the rights to Willie Nelson’s marijuana brand, plans to go public in Canada;

MedMen, a US marijuana cultivator and retailer, has already begun trading on the Canadian Securities Exchange;

Cronos and Canopy Growth Corp are listed on the Nasdaq and the New York Stock Exchange;

Tilray, has become the first marijuana IPO on a major exchange.

11 Canadian Marijuana Markets

There are several Canadian marijuana markets you might want to dabble in. Here are eleven. While many of these facilities are involved in medical marijuana, some plan to expand to meet the demands of recreational marijuana.

Final Thoughts

Will the Black Market Continue to Thrive?

Some of the thinking behind legalizing marijuana was to eliminate or at least tone down the black market. Will legalizing marijuana accomplish this?

Greg Engel, CEO of OrganiGram, one of Canada’s biggest medical marijuana producers, feels that people will slowly transition from the black market and will pay the higher legal prices to get a variety of ‘quality tested’ products. However, let’s look at the figures – “that 90% of the $5.7 billion spent last year was for illegal, non-medical purposes.” This indicates the black market in Canada is huge!

Availability will also be a concern. Will there be a location ‘near you’ to give you the products you need? Other factors include the supply (to meet the demands), as well as high taxes, as a deterrent.

Disclaimer: Is CBD For Me is not an expert on the stock market and buying stocks, nor does it currently own any. Any content published here is not a recommendation to buying stocks or investments. Purchasing is at your own risk and should be done with due diligence.

So there you have it – lots of folks ready to make some big bucks. What are your thoughts on the money that can and will be made with the legalization of recreational marijuana in Canada? Feel free to leave your comments below.