Ontario invests $31 million to protect legal cannabis revenue stream

Ontario’s crackdown on illegal marijuana sales is getting a major boost as provincial officials announce a new $31 million enforcement campaign. The three-year initiative, unveiled in the latest economic forecast, will strengthen the Ontario Provincial Police’s specialized marijuana enforcement unit.

Law enforcement officials are particularly concerned about the surge in illegal dispensaries and online sellers operating outside the regulated framework. Recent estimates indicate a disturbing trend: illegal operators are popping up in major urban centers, especially in Toronto, where nearly 100 unauthorized shops have opened in the past year.

Toronto City Council has spearheaded regulatory reform, demanding that the province strengthen the Cannabis Control Act. Their recent appeal calls for more municipal law enforcement powers and tougher penalties to more effectively combat illegal operations.

Licensed retailers, facing strict regulatory oversight and high operating costs, have long advocated for more aggressive action against their illegal competitors. Paul McGovern brings a unique insight to this issue as a cannabis shop owner and former law enforcement officer. He points to a troubling knowledge gap in the justice system, noting that many officials may not fully understand how dramatically the cannabis landscape has changed since legalization.

The financial implications underscore the importance of protecting the legal market. The province’s revenue from cannabis taxation continues to grow, with Ontario forecast to collect approximately $379 million in excise taxes during the 2024-2025 fiscal year.

The Ontario Cannabis Store is expected to bring an additional $225 million to the province’s coffers during this period.

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