New York’s legal cannabis market has crossed the $500 million sales mark, a significant milestone attributed to intensified efforts to eliminate unlicensed sellers.

According to John Kagia, Director of Policy at the state’s Office of Cannabis Management (OCM), legal cannabis sales in New York reached $529 million by mid-August, just eight months after the first licensed dispensary opened in Manhattan.

This rapid sales growth comes after years of legislative groundwork, following the legalization of cannabis in the state more than three years ago.

A key driver behind this surge is “Operation Padlock,” a statewide law enforcement initiative launched to shut down illegal cannabis shops.

The crackdown began in mid-May, and since then, nearly 40% of the year’s legal cannabis sales have been generated, indicating a direct correlation between the enforcement actions and the growth in legal sales.

Kagia reported that more than two dozen licensed cannabis retailers have seen a 100% increase in sales since the operation started. Many new customers have reported visiting these legal dispensaries after their usual, unlicensed sources were closed by authorities.

Governor Kathy Hochul, a strong advocate for New York’s legal cannabis program, has projected that the state could generate $1.25 billion in tax revenue from the cannabis industry over the next six years.

The revenue from cannabis is bolstered by the state’s taxation strategy, which includes a tax on THC content—the psychoactive component in cannabis—and a 9% excise tax.