Eye On Illinois: Wisconsin pot purchases boosting market on our side of Cheddar Curtain

Many years ago, a friendly Chamber of Commerce executive patiently explained the concept of retail leakage.

At the time, we both worked in Clinton, Iowa, which had one tiny Ace Hardware store but not much else in terms of home improvement retailers, so many personal and professional purchases of construction materials happened in the Quad Cities region. Eventually, economic development officials convinced Home Depot that the city was a largely untapped market, and two decades later, store 2113 remains an economic engine.

Clinton is a Mississippi River town, which meant folks on both sides were well familiar with spending choices for things like gas, groceries, fireworks (more on that tomorrow) and even lottery tickets, given Iowans can’t buy scratchers until they turn 21. Something completely off the radar during those early days of the 21st century was the potential of a legal marijuana market.

That setup is a means of introducing comments from a different Illinois neighbor: Democratic Wisconsin Gov. Tony Evers, speaking last month at his party’s state convention, predicting new legislative maps will give Democrats a chance to take control in Madison and, “yes, we could finally legalize marijuana so we can stop sending our revenue down to my good friend (Gov. JB Pritzker) down in Illinois,” according to Kyle Jaeger of Marijuana Moment.

According to the Illinois Department of Financial and Professional Regulation, out-of-staters spent more than $1 million per day on recreational marijuana in 2024, accounting for 22.35% of annual sales. That’s the lowest percentage since Illinois legalized pot sales in 2020 – not surprising as the rest of the Midwest slowly plays catch-up – but still contributed to total sales that clear $1.7 billion, improving on 2023 by more than $87.7 million. The daily average sales last year hit an all-time high of $4,706,983.21. March, April and May 2025 all posted higher daily averages.

Marijuana Moment said Evers’ February budget request projected the Badger State could realize $58.1 million in pot revenue in fiscal 2027 through 15% wholesale and 10% retail taxes. That’s a far cry from a 2023 Wisconsin Department of Revenue study showing a legalization plan could generate almost $170 million per year. All those numbers make sense in light of a 2022 report wherein Wisconsin officials estimated their residents spent more than $121 million on marijuana here, pumping $36 million into our public coffers.

However any individual might feel about legal weed, from use of the substance itself to the way Illinois has managed its dispensary licensing structure, it’s unarguably big business here and doing a good job of attracting consumers from across the Cheddar Curtain. Wisconsin will plug that leak eventually, which underscores the importance of making sure Illinois’ market can retain its viability.

• Scott T. Holland writes about state government issues for Shaw Local News Network. He can be reached at sholland@shawmedia.com.