The state of New York is likely to legalize recreational use of cannabis for people over the age of 21, and there’s significant opportunity in that for the promotional products industry.

Lawmakers in New York have reached a deal to make marijuana legal in the Empire State, creating what by some estimates would be a $4.2 billion industry and one of the largest state markets for cannabis in the nation.

As of this writing, the bill authorizing legalization hasn’t yet passed the state legislature and been signed into law by Gov. Andrew Cuomo, but reports indicate that the legislation could be adopted as early as the week of March 29.

“It’s big news for the cannabis industry and the promotional products industry,” says Ryan Tickle, vice president of sales at Cannabis Promotions (asi/42996), a promo supplier that specializes in products for the marijuana niche. “New York is the advertising capital of the world, with a lot of money behind those ad dollars.”

Under the proposed legislation, New York’s cannabis industry would include dispensaries, wholesalers and lounges/clubs where adults can consume marijuana, but not alcohol. All these entities are potential clients for promotional products distributors. Also, there will be a five-member state board that oversees the regulation of the industry. Education/awareness initiatives this board may engage in could potentially feature print and promo collateral, too.

As we wait on the final language on the bill that would legalize recreational marijuana in New York, here's an explainer breaking down what we know.

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Tickle sees strong sales possibilities with dispensaries, in particular. “There’ll be very high sales volumes per store in New York City, so it will be important for dispensaries to brand everything they sell so they can get a larger market share,” he says.

For cannabis clients, Tickle says the products that will be needed most are packaging items particular to the industry, like child-resistant packaging, jars, tubes and other cannabis-specific items that the dispensaries and growers will use several of every day. “There’ll also be many promotional items they need like rolling trays, rolling papers and grinders for the stores to sell or give away,” he says.

Branded clothing and headwear also present sales opportunities, as everything from T-shirts and hooded sweatshirts to caps could be needed for company apparel and for retailing or giveaways to cannabis consumers.

Legalization in New York will be a “very big opportunity for distributors that act quickly and get in the right place at the right time,” says Tickle. “Cannabis companies can quickly grow to hundreds of millions or billions of dollars, and they all spend a lot of money on promos and branded packaging. In New York, these companies will be new in general or at least new to the area, and they’ll need help with their branding. We’re here to help.”

As in other states in which cannabis has been legalized, there will likely be considerable regulation of advertising and marketing. Those rules haven’t been written yet in New York, but once they are, promo distributors will need to learn and abide by them if they want to sell in the marijuana market.

Overall, recreational marijuana is legal for adults in 15 states and Washington, D.C. Medical marijuana is legal in 36. New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana in November’s elections. Legalization in New York may, Tickle says, prove a watershed moment for recreational marijuana in the United States.

“New York is a significant hub for business, finance, politics, trends and much more,” says Tickle. “The fact that they gave their stamp of approval for cannabis means a lot to the industry. I see things moving very quickly nationwide once New York starts seeing all the amazing benefits of allowing cannabis to be sold recreationally.” Those benefits could include hundreds of millions of dollars in tax revenue.