By Ray Blanco
This post Breaking Vegas With Pot Profits appeared first on Daily Reckoning.
Last week I talked about the new Nevada legislation that fully legalized marijuana for both medicinal and recreational use on July 1.
This was big news, as Las Vegas alones represents one of the largest marijuana markets on the planet. I expect Las Vegas to become the Amsterdam of the Western Hemisphere, with huge swaths of tourists flocking to indulge in Vegas’ latest legal taboo.
And with respect to this, there is an important update that I need to share with you…
It’s a sneak peek at the early results from last weekend in Las Vegas. The update comes from a tiny pot company working in Nevada. Here’s what they posted on their Facebook page on Sunday, July 2, one day after legalization in the state:
As most of you know, yesterday adult-use cannabis became legal to sell in Nevada… The sales surpassed any of our expectations. To put it in perspective, in 2011 our company’s total revenue was about $500,000. Yesterday, through our four retail facilities in Nevada and our continued strong performance in Oakland, we did about half what we did in all of 2011 in a single day!
Yep, just one operation with exposure to Nevada managed to generate about a quarter-million dollars in sales in a single day.
And that’s just one little company!
That’s amazing — and it’s likely mirrored across most other penny pot operators in Nevada.
Meaning any number of Nevada-based pot businesses are in prime position for a nice rise.
But I’m not recommending this little company, at least not yet. While shares popped on the Facebook announcement, they’ve been fading ever since. I’m keeping a close eye on it, of course, but I think there are a couple better ways to play pot this week.
Still, this is a huge data point for the success of recreational pot in Las Vegas. For a little more context, the Las Vegas Sun reports that “The first four days of legal recreational marijuana sales generated $3 million in sales revenue and about $500,000 in tax revenue.”
Let’s extrapolate that out over the course of a year. If the numbers hold true, which based on historical data from Colorado and California should be the case, we’re looking at sales revenue around $275 million and just over $45 million in tax revenue.
That’s one city, in just one year. Now consider Reno, and the number of other small towns and cities across Nevada.
We’re talking serious amounts of sales revenue. And that’s always going to be good for your portfolio’s bottom line.
In short, demand across the board was way higher than pretty much anyone expected — even the dispensaries!
The opportunity remains huge right now. And as always, I’ll be right there to keep you in the know and your earnings flowing.
To a bright future,
Ray Blanco
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