Pedestrians walk past Ohana Cannabis on North Palm Canyon Drive.
Five months after the Palm Springs City Council voted to reduce taxes and extend an existing moratorium on new cannabis dispensaries in the city until 2028, some local retail marijuana businesses continue to struggle due to what they say is too much competition and the influence of the black market.
The moratorium, first put in place in October 2023, was extended in February after years of concerns that too many dispensaries were opening in the city. State data shows there are 25 retail cannabis licenses active in the city right now—one for every 1,700 residents—making Palm Springs one of the most saturated retail cannabis markets in the state. At one point, there was one dispensary for every 1,350 residents.
At issue, according to some retailers, is that the moratorium did not address concerns over existing competition in the desert since. City leaders were able to stop new dispensaries from opening and cut taxes charged to consumers, but have no control over other aspects of the cannabis business in town.
“The truth is, I think the moratorium was a little late,” says Julie Montante, co-owner of 420 Bank Dispensary & Lounge