Tuesday's 2018 midterm elections was a big success for cannabis advocates.
Michigan legalized recreational marijuana, and while North Dakota rejected a similar measure, both Missouri and Utah voted in favor of medical marijuana.
So far, 10 states and Washington, DC, have legalized the full use of marijuana, and 33 states and Washington, DC, have legalized medical marijuana.
With the Democrats winning key Governor races, and securing more seats in their state Houses/Senates, a few more states are likely to soon legalize marijuana.
According to Cowen Research Group, four states in particular look to have ample runway to legalize cannabis as they now have a Democratic Governor and support from either the state's House and/or Senate.
US demand for cannabis is strong, according to Cowen analyst Vivien Azer. By her calculation, after factoring in Michigan, the total addressable market for adult, medical, and illicit use of marijuana will be $24.5 billion by 2030. That number will likely approach $34 billion if these next four states legalize the drug.
Here is a snapshot of the four states that are next to legalize the drug, according to Azer:
New York
- Democrat governor: Andrew M. Cuomo
- Democrat House control: 81.5%
- Total addressable market by 2030: $5.216 billion
- State population out of US population: 6.1%
Source: Cowen Research Group
Illinois
- Democrat governor: J.B.Pritzker
- Democrat House control: 72.2%
- Total addressable market by 2030: $2.682 billion
- State population out of US population: 3.9%
Source: Cowen Research Group
Connecticut
- Democrat governor: Ned Lamont
- Democrat House control: 100%
- Total addressable market by 2030: $919 million
- State population out of US population: 1.1%
Source: Cowen Research Group
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