Colorado reports illegal marijuana activity amid stable licensed market

CBS News investigation documents black-market operations as state's licensed retail network holds at 935 locations.

FILE — police lights · Tony Webster / CC BY-SA 2.0

Colorado has revealed the extent of illegal marijuana activity operating alongside its regulated market, according to a CBS News report published June 12. The disclosure comes as the state maintains 935 open retail licenses and 632 cultivation licenses, suggesting a substantial legal infrastructure remains in place despite illicit competition.

Recent enforcement actions support the illegal-market concern: SWAT teams seized 1,900 plants at an illegal grow house in mid-July, while the state has also examined intoxicating hemp products in regulated channels—indicating regulatory gaps beyond pure black-market operations. At the same time, licensed sales have declined for four consecutive years, with monthly revenue hovering near $105 million as of April 2026.

The dual pressure—illegal supply and slumping licensed sales—appears to reflect market maturation and enforcement challenges. Watch for Colorado regulators' response: whether they escalate illegal-grow interdiction or adjust licensing/compliance rules to improve viability of legal operators.