Go Under, or Grow Under Pressure: More Closures in December
While December is typically a time for opening gifts, it’s also proving to be a month of tough goodbyes in New Mexico’s cannabis industry. MasBuds in Las Cruces, The Bad Company in Albuquerque, have announced they will be closing its doors this month.
No Rest…
MasBuds, a long-standing dispensary in Las Cruces, has announced it will shut its doors on December 31, citing market oversaturation and price compression as just some of the many obvious challenges. While the store is one of many smaller operators facing pressure in New Mexico’s cannabis industry, MasBuds’ struggles highlight the ongoing debate about pausing the issuance of new cannabis licenses at the county level.
“They should have done something like that a long time ago,” a representative from MasBuds remarked, referencing the growing number of dispensaries in the Las Cruces area. In May 2022, there were only 5 dispensaries in the 88005 ZIP code. By 2023, that number skyrocketed to 12 in January, peaking at 17, before settling at 15 as of November 2024.
The rapid influx of stores in such close proximity created a market environment that was especially difficult for small, independent operators like MasBuds. “We were one of the first,” the store noted, expressing frustration at how quickly market became oversaturated, making it hard to compete with players in the industry of any size.
While some argue that pausing new licenses would unfairly benefit large operators, proponents say it would provide much-needed breathing room for smaller businesses to regain stability. For MasBuds, however, such relief comes too late.
Pause for Hope
As New Mexico’s cannabis market faces growing pains, the idea of pausing new license issuance has emerged as a potential solution to stabilize the industry. Advocates argue that a temporary pause could help mitigate market oversaturation, allowing smaller businesses to recover from fierce competition and price compression. The move could also give the Cannabis Control Division (CCD)—which has struggled to inspect and support existing license holders—time to realign its framework, train inspectors, and refine compliance policies before issuing more licenses.
A recent decision in Oklahoma offers a glimpse of how such measures can play out. Oklahoma, which paused new cannabis licenses in August 2022 and recently extended that pause through 2026, has used the time to address oversaturation, enforcement issues, and compliance gaps. The state’s moratorium was a response to the explosive growth of its cannabis market, which saw over 12,000 licensed businesses competing in a limited market, overwhelming regulators and operators alike.
Supporters in New Mexico see similar potential benefits. A pause could align market growth with consumer demand, ensuring profitability for existing businesses while preventing competition for limited retail real estate. It could also address public concerns over the CCD’s controversial decision to grant police authority to some of its inspectors—an idea widely criticized as an overreach.
Critics argue that a pause might stifle innovation, limit opportunities, and disproportionately benefit larger operators who can weather economic pressures. In New Mexico, where cannabis has been a key driver of job creation, a licensing pause could also slow employment growth. Additionally, without addressing broader systemic issues like high taxes or banking limitations, a moratorium alone may not resolve the industry’s deeper challenges.
Oklahoma’s experience shows the need for thoughtful implementation. Paired with initiatives like tax breaks for smaller businesses and improved regulatory support, a licensing pause in New Mexico could create a more sustainable and equitable market. As the debate continues, the state must balance the needs of existing operators, regulators, and new entrants to ensure the long-term health of its cannabis industry
