Have All Illegal Cannabis Dispensaries Been Shut Down in New York State?

It may seem like illegal cannabis dispensaries are a thing of the past in New York State, but in reality, many are still operating. Enforcement has made progress, but the job is far from complete.

1. A Major Crackdown, But Not Total Closure

New York City’s multi-agency enforcement effort known as Operation Padlock to Protect has resulted in the closure of over 779 illegal cannabis shops and the seizure of approximately $41 million in products. Nearly $65 million in civil penalties have been issued to unlicensed operators That sounds significant—but across the city, roughly 1,500 unlicensed stores were estimated to be open even after that initiative began. This suggests that many shops evaded closure or reopened quickly.

2. Illegal Stores Still Lurk in Plain Sight

Despite widespread enforcement, illegal dispensaries continue operating, especially in neighborhoods underserved by licensed stores. These businesses do not follow standard packaging, testing, or labeling rules and often pitch lower prices that undercut the regulated market—which poses significant risks to public health and erodes trust in legal channels.

3. Legal Dispensaries Facing Their Own Crisis

Adding to the confusion, New York's Office of Cannabis Management (OCM) recently discovered a major error in how it measured distances between retail stores and schools or houses of worship. Originally, OCM assessed from entrance to entrance—which did not comply with the law. After reevaluation, it notified 108 licensed dispensaries statewide (including 89 in New York City) that their locations violate proximity requirements and that their licenses may not be renewed at the time of renewal unless the legislature acts.

While Governor Hochul has pledged not to force immediate closures and is pushing for legislation to grandfather in affected shops, licensing renewals remain at risk, and many operators face financial uncertainty.

4. Why Consumers Still Face Risks

• Unlicensed stores remain visible and accessible despite closures.

• Confusion between legal and illegal operators continues, especially when some licensed shops may be forced to move or close.

• Consumers may unknowingly buy untested, mislabeled products, which can endanger health and undercut public confidence in the legal system.

5. Why an Ongoing Advocacy Role Is Essential

Truly shutting down illegal dispensaries requires persistent enforcement, clear public education, and ongoing oversight. That is the role of a consumer advocacy group. Shoppers deserve clarity on who is licensed, what products are tested, and where to report suspicious activity. Advocacy organizations highlight gaps in enforcement and keep regulators accountable.

6. The Bottom Line

No, illegal dispensaries have not all been shut down in New York State. While enforcement has closed hundreds of storefronts and issued steep penalties, countless shops remain open and continue to compete with the licensed market. Meanwhile licensed operators are struggling with sudden threats to their legitimacy based on measurement errors they had no control over.

For consumers, this means continued risk, continued confusion, and continued uncertainty around trust and safety.

What Consumers Can Do

• Use official sources such as the OCM license lookup tool to verify dispensaries.

• Inspect product packaging for testing labels, license numbers, and state seals.

• Report suspicious or unlabeled stores to local enforcement or consumer protection agencies.

• Support organizations working for fair, transparent, and regulated access to cannabis.