"We legalized the black market. That's what we did."
— Brandon Van Asten, My Dealer, Bayport, Minn.
Brandon Van Asten opened My Dealer in Bayport, Minnesota, on Oct. 5, 2026, with a social-equity license and, in his words, "the house, the second mortgage" on the line. Thirty days in, he's up against a competitor that pays no excise, no sales tax, no 280E and no payroll tax, and never has to pass an inspection.
He describes the illegal delivery operators as "open 24-7," delivering "in one to two hours." By his account, they sell a pound for $1,300, while My Dealer pays "$2,500, $2,600" wholesale. Those prices are Van Asten's claim; Cannabis Professional has not independently verified them.
"How the hell am I supposed to compete with that?"
— Brandon Van Asten
He isn't asking for a bailout. He wants the state to act like a partner:
"You can't just hang the guys out to dry that are playing by the rules."
— Brandon Van Asten
That's the deal of legalization. Licensed shops pay for the privilege of doing it right. Regulators promise to make doing it right worth it. When one side stops doing its work, the partnership breaks. The good news: in several states, regulators are showing up. The better news: licensed shops have advantages no plug can match.
The partner who isn't pulling its weight (yet)
Van Asten's read on Minnesota: "you're competing with the illicit market, which is openly operating, and there's not real enforcement." (09:19)
To be fair to Minnesota's Office of Cannabis Management, its own report shows an "educate first" program at work in hemp shops. From January to October 2025, OCM ran 1,910 inspections and found 12 businesses selling illicit flower. Those businesses voluntarily destroyed 38 pounds of it. OCM issued 52 penalties averaging $5,794, and the amount of illicit flower found for sale fell nearly 81% from 2024 (OCM 2026 Annual Report). Those numbers cover storefront hemp shops, not the delivery and online sellers Van Asten describes. He sees the federal hemp redefinition, most of which takes effect Dec. 11, 2026, as the next lever.
On New York's years of storefront sellers, Van Asten said: "you cannot make it any easier to enforce rules against a brick and mortar store and then just not do anything."
Partners doing their part: the scoreboard
Brief and to the point. These are proof that enforcement can work, not the story.
Where | What the partner did | Source |
|---|---|---|
New York | 738 illegal storefronts padlocked and closed, 2,257 storefront inspections and about $276.9M in illegal product seized to date; 744 licensed adult-use retailers open. In 2024 a Queens judge ruled that parts of NYC's padlock law violated due process; the city appealed. | |
New Jersey | S4287 (Sens. Nicholas Scutari and Anthony Bucco): unlicensed sales become a third-degree crime, entity fines of $100K–$250K, RICO exposure, contraband seizure, and towns can close repeat offenders (more than two violations in two years). Cleared Senate Judiciary 11–0 on Oct. 15, 2026. | |
DC | ABCA and MPD have padlocked 114 illegal cannabis businesses since 2024 closure powers took effect. | |
California | State task force seized or destroyed more than $230M in illicit cannabis in 2026 and more than $1.47B since it began. | |
Minnesota | Educate-first inspections; illicit flower found for sale down nearly 81% (above). |
The pattern: enforcement works when it's fast, keeps coming back, gives towns a tool and respects due process. One raid and a poster doesn't cut it. In July, a Bronx dispensary owner told the Times Union that six of the seven illicit shops near his Arthur Avenue store had reopened after a state enforcement sweep.
Why licensed shops can rise above
Legacy wins on price and convenience. That's it. Licensed shops win on everything a customer can't see in a baggie: a test result, a label, a budtender who knows terpenes from a Tuesday, a store that'll still be there next month. Van Asten says a lot of his recent pre-weekend traffic was returning customers.
Licensed shops pay: excise ✔ sales tax ✔ 280E ✔ testing ✔ seed-to-sale ✔ security ✔ payroll tax ✔
Legacy pays: ✘ ✘ ✘ ✘ ✘ ✘ ✘
THE GAME PLAN
Side 1: What licensed shops do
Sell trust out loud. Put lab results (COAs) at the counter and a QR code on the shelf. "Tested" is your best ad.
Educate every visit. Dosing, onset, edibles vs. flower, what THCA flower really is. A customer who learns something comes back.
Make safety the pitch. Untested product can carry pesticides, mold and mislabeled potency. Say it plainly, without fearmongering.
Win on service. Fast checkout, online ordering where your state allows it, loyalty perks, and hours that fit your town.
Invest in budtender expertise. Train on products, compliance and conversation. The budtender is the one thing the plug can't copy. (More: why budtender training is your best retail strategy and the five-minute huddle.)
Document and report illegal sellers. Date, address, photo of the storefront or ad, what was offered. File with your state regulator and local police, and keep copies. Regulators run on complaints.
Work with your town. Show up at council meetings, invite the police chief in for a tour, and push for local nuisance and closure tools like the one in NJ's S4287.
Be the good neighbor. Card every customer, keep the storefront clean, join the chamber of commerce. Earn the town's backing before you need it.
Side 2: What to expect and ask from regulators and lawmakers
Enforcement against unlicensed sellers, not only licensees. Ask how many inspections of unlicensed operators happened last quarter.
Coverage of delivery, online and Google Maps sellers, not just storefronts.
Repeat follow-up, so a raid is a beginning, not a photo op.
Local closure tools with due process built in, so closures stick in court.
A simple public complaint channel with acknowledgment and status updates.
Close the intoxicating-hemp gap. Illinois' new Hemp Act takes effect Nov. 12, 2026 (IDOA). Most of the federal hemp redefinition takes effect Dec. 11, 2026, after Congress delayed it from Nov. 12 (Congressional Research Service).
Fair rules on marketing and taxes. Van Asten notes licensed Minnesota shops can't put up billboards while hemp brands from neighboring states can. Ask lawmakers to level that field.
Transparency. Publish enforcement numbers on a schedule, as New York and DC do.
"We have good pricing. We have good product variety. We have a cool brand that I think people relate to and they like."
— Brandon Van Asten
FAQ
Isn't enforcement the regulator's job, not mine? Yes, and partners do their own part. Your complaints are often how inspectors find illegal sellers.
Can I compete on price? Usually not against a seller who skips every tax. Compete on trust, safety and service instead.
What should a complaint include? Date, location or URL, what was sold or advertised, and photos or screenshots. No undercover buys; leave that to law enforcement.
Does NJ's S4287 apply to licensed dispensaries? It targets unlicensed sellers. Its vape section makes retail vapor-product sales a crime for anyone who isn't a licensed vapor business or vapor retailer under state tobacco-tax law. If you sell vapes, ask your attorney how that applies to you.
Will crackdowns fix this on their own? No. New York shows they help when they're sustained. Licensed shops still have to win the customer.
Canna 50: Celebrate the budtenders who beat the plug
Legacy sellers have a cell phone and a Telegram account. You have budtenders. Here's the place to show them off.
Nominate your favorite budtender for the Canna 50. At canna50.com, one form lets you nominate a budtender, back someone already nominated, or nominate yourself. Self-nominees can add an optional video.
Nominations close: December 31, 2026
Winners announced: January 8, 2027
How winners are picked: a mix of social interactions, comments, industry insider feedback and Cannabis Professional's own editorial decisions.