Indiana residents spend nearly $2 billion on cannabis each year, despite legalizing neither medical nor adult cannabis in the state, according to a RAND study commissioned by the Richard M. Fairbanks Foundation. The report shows that the state currently spends between $10 million and $20 million annually to enforce its cannabis laws, while cannabis revenue could reach as much as $180 million annually — or about 1% of the state’s General Fund.
Three of Indiana’s four neighboring states—Illinois, Michigan, and Ohio—have legalized adult-use cannabis, resulting in 44% of Hoosiers living within a 50-mile drive of a licensed dispensary across state lines and another 96% living within 100 miles of a licensed dispensary. REPORT says.
The study found about 1.3 million Indiana Residents aged 12 and over have used cannabis in the past year, with about 929,000 of the group using cannabis in the past month, and about 433,000 using cannabis daily or weekly. In 2024, 13,250 Hoosiers were arrested for cannabis, with 90% of those arrests for possession; In 75% of these cases, other non-cannabis charges were filed.
The report notes that despite Indiana having the “most restrictive” cannabis laws in the country, intoxicating hemp products are “widely available” across the state.
