Illinois collected $417.6 million in sales tax from Illinois adult-use cannabis dispensaries in 2023, according to the Illinois Department of Taxation.
It's a big profit, and one that has led to more and more dispensaries popping up near the borders of states where recreational marijuana use remains illegal, like Indiana.
Spokespeople for the four pharmacies closest to Terry Haute, Ill., said Indiana residents are not being deterred.
Sunnyside Pharmacy in Danville opened on May 27, 2020. Until recently, it was the closest pharmacy to Terre Haute, about an hour's drive away.
Sunnyside chief communications officer Jason Arkes said a significant amount of business comes from east of the Illinois state line.
“We don't have exact numbers because we don't collect data,” he said, “but we can certainly say that we see a lot of Indiana driver's licenses at check-in and a lot of Indiana license plates in the parking lots of people looking for a reliable cannabis source.”
Another dispensary, called Seven Point Cannabis Dispensary & Vinyl Shop, which sells more than just marijuana products, opened in Danville on April 20. Employees say it's the first marijuana and vinyl store in the country. Seven Point has since opened a similar store in Berkeley, California, according to the Oakland Press.
The company's website states, “Our artistic and warm atmosphere inspires all visitors, whether they are locals or traveling from Indiana,” and openly invites Indiana residents to visit.
Seven Point is illegal in Indiana, but it was one of 23 dispensaries in Illinois that received a $240,000 grant from the Illinois Department of Commerce and Economic Opportunity, according to the state's website in August.
These Danville stores have seen increased competition for customers recently.
Thrive Wellness opened a dispensary in Cayce, about a 40-minute drive away, in February.
“Certainly, the core of our customer base is in Illinois, but we do have customers that come across state lines, and Terry Haut is the No. 1 zip code in Indiana for people visiting our Cayce store,” said Tim Rasmussen, Thrive's vice president of retail operations.
Rasmussen said he doesn't understand why Indiana hasn't legalized marijuana.
“From my experience in retail, there are a lot of things that don't make sense,” he said. “It's a growing industry, so I don't understand why it's not legal in every state.”
A pharmacy's proximity to state borders determines how many out-of-state customers it gets — a store in Metropolis, Illinois, for example, sees customers from Kentucky and Tennessee, Rasmussen said.
In addition to offering a variety of cannabis products, Thrive Wellness also does charitable work: The Casey store recently promoted a day called Dog Daze to raise money for a local animal shelter.
The company will be partnering with the Keep A Breast Foundation to celebrate Breast Cancer Awareness Month in October at its dispensaries with special packaging of Betty's Eddies cannabis gummies, giveaways promoting the KAB app and a cash donation offer.
“The cannabis industry wants to give back to the community, and people want to donate to worthy causes,” Rasmussen said.
The High Profile Pharmacy in Martinsville, Illinois, a 30-minute drive from Terry Haut, had a tentative opening on Aug. 23 and plans to have its official grand opening this weekend.
Dispensaries are typically owned by cannabis manufacturers, who supply the dispensary and sometimes other dispensaries outside of the chain. Thrive Wellness is a subsidiary of MariMed, which operates stores in Illinois, as well as Massachusetts, Maryland, Delaware, Ohio and Missouri. C3 Industries owns 26 high-profile cannabis shops in Illinois, Michigan, Missouri, Massachusetts, Connecticut and New Jersey.
Vishal Rungta, president and co-founder of C3 Industries, said he expects the Martinsville store to attract a lot of regular Indiana customers.
“We expect those communities will also be excited about the accessibility,” he said. “Typically, we find that stores in areas with higher populations and fewer stores perform better. Boundary dynamics limit the number of stores and their concentration.”
“Martinsville has a large population and a variety of underserved communities nearby, so it will be a good location,” Ranta added.
“We have a store on a state border that's not easily accessible, but we do a lot of business there. Missouri is surrounded by eight states, seven of which don't have stores, so we get a lot of inbound interest. We benefit from people in areas that are not easily accessible.”
Unlike Rasmussen, Langata said he's “not surprised” that Indiana has not allowed Indiana residents to legally access marijuana.
“Not surprisingly, do I support state legalization? Absolutely,” he said. “Different states have different comfort levels and values.”
Indiana State Representative Tonya Pfaff (Democrat, 43rd District) has also advocated for legalizing marijuana in her state.
“While neighboring states have embraced marijuana and the revenue it brings, Indiana's Republican legislators continue to oppose legalization,” she said. “Indiana is missing out on $171 million in potential revenue because Indianans cross state lines to purchase marijuana.”
“Public opinion polls show that a majority of Indiana residents support legalization, yet the Republican state legislature continues to block serious discussion,” she continued. “The best way forward is to give voters a direct role in shaping policy in Indiana through a citizen-led ballot initiative. Until then, legalization will remain stalled.”
State Senator Greg Good (R-38th District) is concerned with the health of Indiana residents who can be treated with medical marijuana.
“Based on feedback from medical professionals and researchers, I am open to its use for medical purposes,” he said. “The research-based opinions of medical experts are a top priority for me, especially regarding how cannabis is used for pain management,” he said. “I will not make a decision about cannabis based on potential revenue for the state, but rather based on the health and well-being of Indiana residents.”
