Indiana residents spend nearly $2 billion on cannabis annually despite the legalization of neither medical nor adult-use cannabis in the state, according to a RAND study commissioned by the Richard M. Fairbanks Foundation. The report indicates that the state currently spends between $10 million and $20 million per year to enforce its cannabis laws, while cannabis-derived revenues could reach as much as $180 million annually – or about 1% of the state’s General Fund.
Three out of four of Indiana’s neighboring states – Illinois, Michigan, and Ohio – have legalized cannabis for adult use, which has led to 44% of Hoosiers living within a 50-mile drive to a licensed dispensary across state lines and another 96% living within 100 miles of a licensed dispensary, the report says.
The study found about 1.3 million Indiana residents aged 12-or-older used cannabis within the past year, with about 929,000 of the cohort consumed 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; other non-cannabis charges were filed in 75% of those cases.
The report notes that despite Indiana having the “most restrictive” cannabis laws in the nation, intoxicating hemp products are “widely available” throughout the state.
