Amsterdam has 200 coffee shops that sell the drug but Denver already has 100 licences issued for the sale of marijuana. Is this a good thing?

With roughly 200 coffee shops that sell recreational marijuana, Amsterdam has built a reputation for foreign dope smokers looking for no hassles. Although, it seems Denver is quickly catching up. Since January 1st of this year, the state of Colorado became the first place in the world to allow the sale of marijuana for any purpose. But do they really want to reach the level achieved by their Dutch counterpart?

Moving fast

The 200 coffee shops in Amsterdam don’t seem to far off for the Colorado capital. They already have over 100 licences issued for stores wanting to sell the drug for recreational purposes. That’s a whopping three quarters of all state applications. Even more locations than Starbucks has in that city.

Hundred million dollar market

One business owner said she expects her $1,000 per day operation to hit $100,000. This after converting from a medical purpose only shop to a recreational shop. Line-ups were out the door on day-one. Others are quickly coming up with ideas on how to capitalize like smoking and skiing bus tours. Overall, the market is expected to be in the range of $370 million with a return to the state coffers between $100 to $150 million in tax revenue this year (25% tax on recreational marijuana products). According to the BBC, the state has already collected $3.5 million in tax for the month of January from marijuana sales. $2 million of which was for recreational purposes.

Billion dollar savings

On top of the money being made, it is estimated that the legalization will save $10 billion in taxpayer money. That was the cost associated with enforcing previously illegal activities.

Still chasing Amsterdam?

With the economic impacts are already materializing, will Denver catch up to Amsterdam? According to the New York Times, one million foreign tourists visit Amsterdam’s “special” coffee shops each year. But in 2012, the Prime Minister of the Netherlands (Mark Rutte) was looking at restrictions. Specifically, limiting sale to residents. Clearly, no all are on board.

Some rules

Denver is approaching the situation a little differently. Unlike in Amsterdam, shops in Denver will close at 7pm. Not only that, they don’t allow smoking in their shop. In fact, the Clean Indoor Act doesn’t allow for smoking indoors in public establishments. The city takes it further prohibiting use in outdoor spaces as well.

New York Times – 14% of Americans smoke marijuana while only 5% of the dutch do.

While about 20 states allow for the sale of marijuana, none are at the same level as Colorado. But do other major cities really want to follow the Denver model. We’ll have to wait and see if 55% of Colorado voters still agree in a few years.

CNN – Obama talks about pot

The Future of Weed

[Sources / Literature: CNN, Amsterdam Info, BBC, Telegraph, NBC, New York Times]