The state of Illinois collected $417.6 million in sales taxes from Illinois adult use cannabis dispensaries in 2023, per the Illinois Department of Revenue.
That’s a big payout and more and more dispensaries are locating close to the borders of states where recreational use of marijuana is still illegal, like in Indiana.
Hoosiers aren’t deterred, according to spokesmen for the four Illinois dispensaries closest to Terre Haute.
Sunnyside’s dispensary in Danville opened May 27, 2020; until recently, it was the closest dispensary to Terre Haute, at about an hour’s drive away.
According to Jason Erkes, chief communications officer for Sunnyside, a fair amount of business comes from east of the Illinois border.
“I can’t put a hard number on it because we don’t collect data,” he said. “But there is no doubt that we see a lot of Indiana driver’s licenses when people check in and a lot of Indiana license plates in the parking lot from people looking for a trusted cannabis source.”
Another dispensary opened in Danville on April 20 with offerings that branch out from simply cannabis products, called Seven Point.’s Cannabis Dispensary & Vinyl Shop. It was the first cannabis and vinyl store in the country, according to an employee. Seven Point. subsequently opened another such shop in Berkeley, California, the Oakland Press reported.
Its website openly invites Hoosier patronage, reading, “Our artistic and warm ambiance inspire visitors, whether local residents or those traveling from Indiana.”
While Seven Point. would be illegal in Indiana, in Illinois it was one of 23 dispensaries receiving a $240,000 grant from the Illinois Department of Commerce and Economic Opportunity, according to the state’s website in August.
These Danville locations have recently seen some competition for patronage.
Thrive Wellness opened a dispensary in Casey in February, about a 40-minute drive. Tim Rasumussen, vice president of retail operations for Thrive, said, “Certainly, the stable core of our base lives in Illinois. But we have customers who do cross state lines. Terre Haute has the No. 1 zip code in Indiana that visits our Casey store.”
Rasumussen said he doesn’t understand why Indiana hasn’t legalized cannabis.
“Lots of things mystify me from my retail experience,” he said. “It’s an industry that continues to grow — I don’t know why it’s not legal in all states.”
A dispensary’s proximity to state lines dictates how many out-of-state visitors it might receive, Rasumussen said. For example, the store in Metropolis, Illinois, gets customers visiting from Kentucky and Tennessee.
In addition to providing a variety of cannabis products, Thrive Wellness also practices philanthropy. The Casey store recently promoted a day called Dog Daze, during which it collected contributions for the local animal shelter.
It will observe Breast Cancer Awareness Month in October with dispensaries by partnering with the Keep A Breast Foundation, offering special packaging for Betty’s Eddies cannabis gummies and giveaways promoting the KAB app, as well as with a financial donation.
“The cannabis sector wants to give back to the community, and people like to donate to a worthy cause,” Rasumussen said.
The High Profile dispensary in Martinsville, Illinois, a 30-minute drive from Terre Haute, had a soft opening on Aug. 23, with an official grand opening set for this coming weekend.
Dispensaries are generally owned by a cannabis manufacturer that provides them — and sometimes other dispensaries not within their chain — with the product. Thrive Wellness is a subsidiary of MariMed, which operates shops in Massachusetts, Maryland, Delaware, Ohio and Missouri, in addition to Illinois. C3 Industries has 26 High Profile cannabis shops in Illinois, Michigan, Missouri, Massachusetts, Connecticut and New Jersey.
Vishal Rungta, president and cofounder of C3 Industries, said he expects the Martinsville location to enjoy a healthy number of Indiana patrons.
“Our expectation is that those communities are also excited about the accessibility,” he said. “In general, you find that shops in areas where there are large populations and not many available stores perform well. The border dynamic limits the number of stores and their concentration.
“Martinsville has a healthy population and various nearby communities that are underserved, so that will be a good location,” Rungta added.
“We have locations that sit on borders of states with less accessibility and they have a lot of business. Missouri is surrounded by eight states, seven that have no stores, so there’s a lot of inbound interest. We benefit from folks for whom it is less accessible.”
Unlike Rasumussen, Rungta said he is “not surprised” that Indiana has declined to grant Hoosiers legal access to cannabis.
“Not surprised, but am I an advocate for states legalizing it? Absolutely,” he said. “States are all across the spectrum in terms of what they’re comfortable with and what values they have.”
Indiana state Rep. Tonya Pfaff, D-Terre Haute, is also an advocate for legalizing cannabis in the state.
“While neighboring states embrace cannabis and the revenue it brings, Indiana legislative Republicans remain opposed to legalization,” she said. “Our state is losing out on $171 million in potential revenue as Hoosiers purchase cannabis across state lines.
“Polls show that the majority of Hoosiers support legalization, but the Republican Legislature continues to block any serious discussion,” she continued. “The best way to move forward is through citizen-led ballot initiatives, giving voters a direct role in shaping Indiana’s policy. Until then, legalization will remain stalled.”
State Sen. Greg Goode, R-Terre Haute, is interested in the well-being of Hoosiers who could be treated with medical marijuana.
“I am open to medicinal use based on feedback from medical providers and researchers,” he said. “The research-based opinion of medical experts is of the highest priority to me, particularly how cannabis might be used in pain management,” he said. “I will not make a decision on cannabis based on state revenue possibilities, but instead on the health and wellness of Hoosiers.”
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