🎓 The Academy
Everything in Cannabis Tycoon is built on how the real industry works. This is the why behind the game.
How the business really works
⚖️ It's 24 markets, not one
Cannabis is federally Schedule I, so there's no national market. Each state runs its own program with its own licenses, taxes, and rules. Product legally cannot cross state lines – which is why prices, supply, and competition differ so wildly from one state to the next.
🧾 Section 280E
Because cannabis is federally illegal, IRS Section 280E bars cannabis businesses from deducting ordinary expenses – rent, payroll, marketing – on federal taxes. Effective tax rates routinely hit 60–80%. It's the single biggest structural drag in the industry, and no other legal business faces it.
🏦 The banking problem
Most cannabis businesses can't get a normal bank account, credit card, or loan, because banks fear federal money-laundering liability. Many operate heavily in cash, which raises security and compliance costs.
📉 Price compression
New markets enjoy an 18–36 month "golden window" of 60–70% margins. Then supply catches up and wholesale prices fall 50–70% from their peak. Colorado's annual sales fell more than 40% from their 2021 high. Growth is not guaranteed.
🎫 Open vs limited licenses
"Open-license" states (Oklahoma, Oregon, Colorado) are cheap to enter but oversupplied and low-margin. "Limited-license" states (Illinois, New Jersey, New York) cap licenses, so prices and margins stay high – but entry can cost seven figures.
💰 The 25x price spread
Wholesale flower has traded as low as ~$100/lb in oversupplied Oregon and as high as ~$2,500/lb in supply-constrained New Jersey. Where you operate is one of the biggest decisions you'll make.
🧪 Value-added products
Flower is the most commoditized category and falls fastest. Concentrates and edibles hold their margins far better, so processors can ride out flower price crashes. Real extraction yields run ~10–25% of input weight – low volume, high value per gram.
👷 Labor & 280E
Skilled growers, budtenders and extraction techs make a real difference to yield and sales – but payroll is brutal here. Because Section 280E blocks deducting wages federally, a cannabis company effectively pays its labor with after-tax dollars, unlike almost any other business.
🤝 Co-ops & associations
Shut out of normal banking and national advertising, operators lean on co-ops, state trade associations and multi-state operators for legitimacy, shared marketing and lobbying. Scale brings a real network effect – bigger coalitions wield more influence.
🗳️ How states legalize
Most US legalization came from citizen ballot initiatives, not legislatures — signature drives qualify a measure, then advocacy and campaign spending win the vote. States typically legalize medical first, then adult-use. In the game you can fund that exact path to open a market where none exists.
Cultivation 101
A commercial grow runs in phases: germination (~1 week) → vegetative growth (~4 weeks) → flowering (strain-dependent, ~7–14 weeks) → harvest and cure (~2 weeks). Start to finish is roughly four months, which is why you have to plan harvests well ahead.
Indoor vs outdoor
Indoor flower sells for 3–10× the wholesale price of outdoor, but costs far more in power and labor.
Yield isn't everything
High-yield strains can be worth less per gram than scarce, hyped cultivars. Match genetics to your market.
Myths, busted
"Indica = couch-lock" tracks the terpene myrcene, not the label. Purple color comes from cold-triggered anthocyanins, not potency. High THC ≠ better high.
Strain library
| Strain | Type | THC | CBD | Flower | Terpene |
|---|---|---|---|---|---|
| Northern Lights A legendary, forgiving indica — fast to flower and hard to kill, the classic beginner grow. |
Indica | 18% | 0.1% | 7wk | Myrcene |
| Afghani A hardy landrace indica from the Hindu Kush; resinous, resilient, and the genetic backbone of countless hybrids. |
Indica | 17% | 0.6% | 7wk | Myrcene |
| Granddaddy Purple Its purple hue comes from anthocyanin pigments triggered by cold — color, not potency. |
Indica | 20% | 0.4% | 8wk | Myrcene |
| Blue Dream For years the best-selling strain in the US: high-yielding, balanced, and reliably commercial. |
Hybrid | 19% | 0.2% | 9wk | Myrcene |
| Pineapple Express A tropical, limonene-forward hybrid popularized by film — bright citrus nose, steady seller. |
Hybrid | 19% | 0.1% | 9wk | Limonene |
| Durban Poison A pure South African landrace sativa — unusually fast-flowering for a sativa. |
Sativa | 20% | 0.1% | 9wk | Terpinolene |
| Jack Herer Named for the cannabis activist; a Haze-leaning sativa prized by cultivators. |
Sativa | 20% | 0.2% | 10wk | Terpinolene |
| Sour Diesel A pungent diesel-scented sativa with a long flowering stretch — patience pays. |
Sativa | 22% | 0.2% | 11wk | Caryophyllene |
| OG Kush The West Coast cornerstone; finicky and lower-yielding, but its name still moves product. |
Hybrid | 23% | 0.3% | 9wk | Myrcene |
| Gorilla Glue #4 An extremely resinous, high-THC hybrid (a.k.a. Original Glue) — a concentrate-maker favorite. |
Hybrid | 26% | 0.1% | 9wk | Caryophyllene |
| Girl Scout Cookies GSC put cookies genetics on the map; premium pricing, modest yield. |
Hybrid | 25% | 0.2% | 9wk | Caryophyllene |
| Wedding Cake A dessert-line heavyweight; dense, frosty, and a top shelf staple. |
Hybrid | 25% | 0.1% | 9wk | Caryophyllene |
| Gelato A demanding, designer dessert strain — beautiful bag appeal commands top dollar. |
Hybrid | 24% | 0.1% | 9wk | Caryophyllene |
| Runtz A hype-driven candy strain; expensive seeds and exacting care, but elite shelf prices. |
Hybrid | 27% | 0.1% | 9wk | Limonene |
| Bruce Banner One of the most potent commercial hybrids on record — high THC and high yield. |
Hybrid | 28% | 0.1% | 9wk | Myrcene |
| Harlequin A reliable ~1:1+ CBD strain; mild high, strong demand from medical patients. |
Hybrid medical | 7% | 10% | 9wk | Myrcene |
| ACDC A ~20:1 CBD-to-THC cultivar — almost no intoxication; a flagship medical strain. |
Sativa medical | 1% | 16% | 9wk | Myrcene |
| Charlotte's Web The famous high-CBD, ultra-low-THC variety — legal even in some low-THC-only states. |
Sativa medical | 0.3% | 17% | 9wk | Pinene |
| Auto Northern Lights An autoflowering starter — seed to harvest in about two weeks. Lower yield and potency, but the fastest way to your first sale. |
Indica | 15% | 0.2% | 2wk | Myrcene |
| Auto Gelato A fast autoflower with dessert-strain bag appeal — quick turnaround for impatient growers. |
Hybrid | 20% | 0.1% | 2wk | Caryophyllene |
State law explorer
Legal status as of 2026. Cultivation cost shown is the in-game license fee, scaled from real-world figures.
| State | Status | Excise | Sales tax | Wholesale | Demand |
|---|---|---|---|---|---|
| California California is the largest legal market in the world, yet a robust illicit market still undercuts licensed operators. |
Adult-use legal | 15% | 7.25% | $1.65 | 2.0× |
| New York New York originally taxed by THC content but repealed that model in 2024 for a simpler 9% excise. |
Adult-use legal | 13% | 4% | $4.85 | 1.6× |
| Michigan Michigan’s low taxes and license caps made it one of the cheapest legal markets in the country. |
Adult-use legal | 10% | 6% | $1.75 | 1.4× |
| Colorado Colorado opened the first recreational sales in the US in January 2014. |
Adult-use legal | 15% | 2.9% | $1.95 | 1.3× |
| Illinois Illinois legalized via legislation in 2019 and built equity provisions into its licensing from the start. |
Adult-use legal | 25% | 6.25% | $4.40 | 1.3× |
| Nevada Nevada’s Las Vegas tourism drives outsized per-capita cannabis sales. |
Adult-use legal | 15% | 6.85% | $2.70 | 1.2× |
| New Jersey New Jersey adds a per-ounce Social Equity Excise Fee that scales with the average retail price. |
Adult-use legal | 0% | 6.63% | $5.50 | 1.2× |
| Ohio Ohio became the 24th adult-use state via a 2023 citizen initiative. |
Adult-use legal | 10% | 5.75% | $4.20 | 1.2× |
| Washington Washington levies a 37% excise tax — the highest cannabis tax rate in the nation. |
Adult-use legal | 37% | 6.5% | $2.50 | 1.2× |
| Arizona Arizona voters passed adult-use via Prop 207 in 2020; a 16% excise tax funds community colleges and public safety. |
Adult-use legal | 16% | 5.6% | $2.70 | 1.1× |
| Massachusetts Massachusetts created the first independent Cannabis Control Commission to regulate its market. |
Adult-use legal | 10.8% | 6.25% | $4.40 | 1.1× |
| Missouri Missouri’s constitution caps the adult-use excise tax at 6%. |
Adult-use legal | 6% | 4.23% | $2.20 | 1.0× |
| Oregon Oregon has no general sales tax; a 17% state cannabis tax applies instead. |
Adult-use legal | 17% | 0% | $1.00 | 1.0× |
| Virginia Virginia legalized possession and home growing in 2021 but has not yet launched legal retail sales. |
Adult-use legal | 21% | 5.3% | $3.00 | 1.0× |
| Maryland Maryland launched adult-use sales in July 2023 by converting existing medical operators. |
Adult-use legal | 9% | 6% | $3.86 | 0.9× |
| Minnesota Minnesota legalized adult-use in 2023 and prioritized social-equity license applicants. |
Adult-use legal | 10% | 6.88% | $3.50 | 0.9× |
| Connecticut Connecticut taxes cannabis partly by THC potency, a rare model meant to discourage high-potency products. |
Adult-use legal | 6.3% | 6.35% | $4.60 | 0.8× |
| New Mexico New Mexico phases its excise tax upward over time, starting at 12%. |
Adult-use legal | 12% | 5.13% | $1.80 | 0.7× |
| Maine Maine allows adults to grow up to three mature plants at home. |
Adult-use legal | 10% | 5.5% | $2.20 | 0.6× |
| Washington, D.C. D.C. legalized possession and home growing by initiative, but Congress blocks taxed retail sales — so adults "gift" cannabis instead. |
Adult-use legal | 6% | 6% | $3.00 | 0.6× |
| Delaware Delaware legalized adult-use in 2023 when the legislature let the bill become law without the governor’s signature. |
Adult-use legal | 15% | 0% | $4.50 | 0.5× |
| Montana Montana funds conservation and parks programs with part of its cannabis tax revenue. |
Adult-use legal | 20% | 0% | $2.40 | 0.5× |
| Rhode Island Rhode Island legalized adult-use in 2022 and added a 10% state cannabis tax on top of sales tax. |
Adult-use legal | 10% | 7% | $4.00 | 0.4× |
| Vermont Vermont was the first state to legalize adult-use through its legislature rather than a ballot. |
Adult-use legal | 14% | 6% | $3.80 | 0.4× |
| Alaska Alaska taxes cultivation by weight at the wholesale level rather than via a retail excise tax. |
Adult-use legal | 0% | 0% | $4.20 | 0.3× |
| Florida Florida has one of the largest medical markets in the country; its program uses vertically integrated licenses. |
Medical only | 0% | 6% | $3.20 | 1.2× |
| Pennsylvania Pennsylvania runs a large medical program; adult-use proposals remain under debate. |
Medical only | 5% | 6% | $2.85 | 1.0× |
| Oklahoma Oklahoma’s low license fees produced one of the densest medical markets in the US. |
Medical only | 7% | 4.5% | $1.05 | 0.9× |
| Utah Utah’s medical program dispenses through a limited number of state-licensed pharmacies. |
Medical only | 0% | 4.85% | $4.50 | 0.6× |
| Arkansas Arkansas runs a medical-only program; a 2022 adult-use measure failed at the ballot. |
Medical only | 0% | 6.5% | $4.00 | 0.5× |
| Kentucky Kentucky’s medical program launched in 2025 after years of debate. |
Medical only | 0% | 6% | $4.00 | 0.5× |
| Louisiana Louisiana long restricted medical cannabis to non-smokable forms before allowing flower in 2022. |
Medical only | 0% | 4.45% | $4.00 | 0.5× |
| Mississippi Mississippi voters approved medical cannabis, the state supreme court struck it down, then the legislature re-enacted it. |
Medical only | 5% | 7% | $3.50 | 0.5× |
| New Hampshire New Hampshire has no sales tax and a medical-only cannabis program. |
Medical only | 0% | 0% | $4.00 | 0.5× |
| Alabama Alabama legalized medical cannabis in 2021 but licensing was tied up in litigation for years. |
Medical only | 9% | 4% | $4.00 | 0.4× |
| Hawaii Hawaii was the first US state to legalize medical cannabis through a legislature (2000) rather than a ballot. |
Medical only | 0% | 4% | $5.00 | 0.4× |
| North Dakota North Dakota voters have rejected adult-use legalization more than once. |
Medical only | 0% | 5% | $4.00 | 0.4× |
| South Dakota South Dakota voters approved adult-use in 2020, but the state supreme court overturned it. |
Medical only | 0% | 4.5% | $4.00 | 0.4× |
| West Virginia West Virginia’s medical program permits a range of product forms but not raw smokable flower in all cases. |
Medical only | 0% | 6% | $4.00 | 0.4× |
| Georgia Georgia only permits low-THC oil (≤5% THC) for registered patients — no smokable flower or commercial market. |
Low-THC only | 0% | 4% | — | — |
| Idaho Idaho is one of the strictest states — even most CBD with any THC remains illegal. |
Prohibition | 0% | 6% | — | — |
| Indiana Indiana has no medical program; only low-THC CBD products are permitted. |
Low-THC only | 0% | 7% | — | — |
| Iowa Iowa’s medical program is limited to low-THC products capped per patient. |
Low-THC only | 0% | 6% | — | — |
| Kansas Kansas has not legalized medical or adult-use cannabis. |
Prohibition | 0% | 6.5% | — | — |
| Nebraska Nebraska voters approved a medical program in 2024 that has faced implementation challenges. |
Prohibition | 0% | 5.5% | — | — |
| North Carolina North Carolina has no medical program; only hemp-derived products are sold. |
Prohibition | 0% | 4.75% | — | — |
| South Carolina South Carolina has repeatedly debated but not passed a medical program. |
Prohibition | 0% | 6% | — | — |
| Tennessee Tennessee permits only low-THC oil for a narrow set of conditions. |
Low-THC only | 0% | 7% | — | — |
| Texas Texas’s Compassionate Use Program allows only low-THC cannabis for qualifying patients. |
Low-THC only | 0% | 6.25% | — | — |
| Wisconsin Wisconsin has no medical or adult-use program; only CBD is broadly available. |
Low-THC only | 0% | 5% | — | — |
| Wyoming Wyoming has not legalized medical or adult-use cannabis. |
Prohibition | 0% | 4% | — | — |