Ethical and Effective Legal
Representation
775-322-3666
Call Now: 775-322-3666

How COVID-19 Is Impacting the Cannabis Industry in Nevada

As the COVID-19 pandemic has spread across Nevada, the cannabis industry has been impacted in several ways. The stay-at-home order that was issued by Gov. Sisolak caused slumping sales even though marijuana businesses were declared to be essential and allowed to remain open. While the pandemic has driven cannabis sales in other states that have legalized marijuana for recreational and medical use, Nevada’s unique position as a center for tourism has meant that cannabis businesses have fared differently. 

Plummeting Sales

While some states have seen increases in marijuana sales during the pandemic, cannabis businesses, Nevada has had different experiences. When the stay-at-home order was issued in March, business fell sharply. One of the reasons for the drop in sales was a general fear of being exposed to COVID-19. Another was the drop in the number of tourists as many recreational marijuana businesses in Las Vegas and Reno depend on tourists for a large slice of their profits. Some cannabis businesses have turned to deliveries as a way to make up for their losses. However, many continue to struggle because of significantly reduced foot-traffic from tourists and locals alike.

Unavailability of Financing

While cannabis is legal for recreational and medical use in Nevada, it is still a Schedule I controlled substance under federal law. Because of its designation under federal law, cannabis businesses already struggle to obtain bank financing. Like other industries, the cannabis industry experienced a large drop in profits because of the pandemic. However, cannabis businesses in Nevada were not eligible for funds under the federal CARES Act, which provided help to many other types of businesses. This has led to a quandary for cannabis business owners who need to find financing to continue operating. Cannabis businesses are also heavily regulated and highly taxed, presenting them with additional financial hurdles.

Pressure From the Black Market

The heavy regulation and taxation combined with a lack of access to financing mean that the legal cannabis industry is susceptible to pressure from the black market. People who sell cannabis illegally do not have the same financial pressures and can sell their products to buyers in their homes without adding taxes. However, the increase in black market sales also places buyers at risk of contracting the virus and purchasing untested and unregulated products, while also harming legitimate businesses and Nevada’s economy. 

What Our Clients Say

My family and I are thankful to Maddox, Segerblom and Canepa for their assistance during a three year case regarding construction defects to our home. We are truly appreciative of their knowledge, determination and assistance during this process. They were always courteous, and available to answer any and all of our concerns and questions. Thank you for the wonderful resolution. Many thanks to you and your staff.

Frances Castelli

We used Maddox, Segerblom & Canepa to represent us in a legal suit re problems in construction on new properties that we purchased from a developer.

We were very pleased with the representation provided by this law firm. They were fully communicative, responsive to our questions and were very knowledgeable about the issues that required resolution. Even after we reached a resolution, they have been responsive in making sure to point us in the right direction for help with repairs that are required.

We would recommend them to others with similar issues that require legal help.

Atam & Margo Lalchandani

Maddox, Segerblom & Canepa did a FANTASTIC job in our construction defects case. I interacted with several people from their office throughout our 2 year litigation. Their staff is friendly, knowledgeable and always prompt about getting back to you when you have questions/comments/concerns. I especially enjoyed working with Darcy, Ardea, Eva, and Sandra. Being part of a lawsuit is no fun for anyone, but if you have to be a part of one, I can’t say enough positive things about this firm!

Victoria Fox

The law firm of Maddox, Segerblom, and Canepa were amazing to work with. They were thorough and always available for any questions we had. We worked a lot with Sandy who was always professional, friendly, always on time for appointments and just a great person to represent this firm. We have never been involved in a law suit before and they made it comfortable for us. We appreciate the hard work the lawyers and people who work for the firm did and would recommend them.

Becky Loudenburg
GET EXCLUSIVE LEGAL NEWS
Receive our free eNewsletter with the latest legal news.