New Mexico’s Cannabis War: One Year Later—Has Anything Changed?

^{Filed Under: Regulatory Chaos, Industry Showdown}

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A year ago, we covered New Mexico’s cannabis industry at a breaking point—rampant illegal sales, failing enforcement, and an industry split between small businesses fighting for survival and corporate giants pushing for monopolization. Now, in 2025, has anything actually changed?

Back then, New Mexico prided itself on being different. Open licensing, affordable fees, and widespread access meant a more inclusive market. But cracks formed quickly: oversaturation, price wars, and illegal cannabis flooding in from other states. The Cannabis Control Division (CCD) was supposed to regulate this chaos but instead became a lightning rod for criticism, accused of enforcing the law selectively and letting major offenders slip through.

So, let’s revisit the battleground and see who’s winning—legal or illegal, big or small, enforcers or the underground.

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More Enforcement, Same Old Problems

Since our last report, New Mexico’s lawmakers doubled down on enforcement. The state granted the CCD more authority, launched more crackdowns, and even passed House Bill 10, creating a cannabis enforcement bureau.

Did it work?

Not really.

The CCD now has more power to inspect, fine, and shut down noncompliant dispensaries, but the real criminals—the ones importing illegal product or operating unlicensed grows—are still slipping through. Meanwhile, many legitimate small dispensaries claim they’re getting hit with repeated inspections and nitpicky violations while obvious bad actors continue operating unchecked.

One dispensary owner in Albuquerque put it bluntly: “They’re coming after us for minor infractions, but I can point to three shops within a five-minute drive selling out-of-state weed with no consequences.”

The illicit market is still thriving—despite the crackdown, prices for black-market cannabis have barely changed. And the newly approved Cannabis Enforcement Bureau? Still a mystery, with industry insiders divided over whether it will help or just add another layer of bureaucracy.

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License Wars: Big Players vs. Small Businesses

New Mexico still hasn’t placed a cap on cannabis licenses, a move some argue would curb oversaturation and stabilize the market. But the fight over whether to limit licenses or keep them open has split the industry down the middle.

On one side: corporate operators and the New Mexico Cannabis Chamber of Commerce, which argue that too many licenses have flooded the market, driving prices down and putting businesses at risk.

On the other: small operators and advocates, who say the real issue is bad enforcement—not too many licenses. They argue that cutting off new licenses would just recreate the monopolized system that existed pre-legalization.

Last year, we warned that if enforcement didn’t improve, the legal industry would start cannibalizing itself. Now, that’s exactly what’s happening. Some dispensaries are going under—not because of competition, but because of an unfair playing field.

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Federal Roadblocks: The Border Patrol Crackdown Continues

For dispensaries near Las Cruces and Sunland Park, the biggest threat isn’t state enforcement—it’s federal.

New Mexico remains the only border state with fully legal cannabis, but that means federal checkpoints dotting the landscape are still confiscating state-legal product.

Border Patrol seizures of cannabis have increased over the past year, and dispensary owners say it’s crippling their ability to do business with northern retailers. Some have even moved operations further north to avoid the risk altogether.

The result? A fractured market—businesses in southern New Mexico are increasingly cut off from those up north, leading to regional price disparities and supply chain struggles.

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Illegal Grows & Unlicensed Sales: Still a Major Issue

We previously reported on Chinese-backed illegal grows in New Mexico and dispensaries selling untested, out-of-state cannabis. A year later, has anything changed?

Not really.

• Unlicensed grows are still popping up, often in rural areas.
• Some dispensaries continue selling out-of-state product under the radar.
• State authorities claim they’re cracking down, but insiders say the response is sluggish.

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The Verdict: One Year Later, What’s Next?

So, is New Mexico’s cannabis market better or worse than it was a year ago?

Better in some ways, worse in others.

✔ Legal businesses now have clearer regulations, but enforcement still favors big players.
✔ More products are being tested, but illegal sales haven’t slowed.
✔ State regulators have more power, but they’re still not cracking down where it matters most.

New Mexico is at a turning point. The industry has matured, but its biggest issues—illegal sales, unfair enforcement, and corporate influence—haven’t gone away. If these problems aren’t addressed soon, the state risks losing what made its cannabis model unique.

We’ll be watching.

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