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Double dealing: Legal, illicit blur in California pot market

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By MICHAEL R. BLOOD
Associated Press

LOS ANGELES (AP) — As California enters its fifth year of broad legal marijuana sales, industry insiders say the practice of working simultaneously in the legal and illicit markets is all too commonplace in the struggling pot economy.

READ MORE: Monterey considers zoning cannabis dispensaries in three different parts of the city

Legal businesses have long complained that heavy taxes and regulation — paired with thriving illegal sales — make it impossible for licensed shops to turn a profit. To survive, an increasing number of license holders are secretly operating in the underground — working both sides of the marketplace to make ends meet.

Leading companies recently warned Democratic Gov. Gavin Newsom the legal market could collapse. Newsom says he's open to changes.

Associated Press

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