Ohio Says No to Recreational Marijuana

STANLEY BROTHERS GROW FARMStates that are fighting to legalize marijuana next year should be paying close attention to what is happening in Ohio. Ohio’s ballet measure, Issue 3, was defeated by a crushing 64 percent by voters. The ballet would have allowed only 10 marijuana growing sites in Ohio. The sites were owned by some of the wealthiest individuals in Ohio like reality TV star Nick Lachey. This fact may have been a leading reason why legalization was denied by voters.

Issue 3 would have made recreational pot legal for Ohio residents 21 and older, and medical marijuana legal for residents suffering from certain illnesses. It would also let home growers cultivate up to 4 flowering plants at once, but growers would have to pay a $50 fee.

Some state leaders are implying that the defeat of Issue 3 has less to do with moral outrage about marijuana legalization, and more to do with fears of monopoly by the rich and powerful. The measure’s opponents obliterated the proposal by calling it a “monopoly.”

Keith Humphreys, a member of California’s Blue Ribbon Commission on Marijuana Policy, noted that the Ohio initiative was pushed by wealthy investors with no previous connection to marijuana activism in order to benefit from a lucrative oligopoly on marijuana cultivation. The loss comes as a major blow to recreational and medical users, and to investors. Many investors in the proposed grow facilities put up to $2 million per site to fund the pro-legalization campaign.

Some state representatives are satisfied with the amendment’s failure. State Representative Mike Curtin (D-Marble Cliff) believes the initiative was the result of a collusion between politicians and deep-pocketed investors to make amendments to the state constitution that will mostly benefit investors. Curtin claims that what happened in Ohio is now happening across the country, and state legislators should ensure that the interests of businessmen do not supersede the interests of the general public.

Marijuana Merchant Account (MMA) offers a variety of marijuana payment solutions like debit cards, credit cards, dispensary check processing, and more. If your state provides legal recreational or medical marijuana growth and distribution, you’ll need a payment processor with experience and resources to increase your profits. Don’t wait on big banks to support your merchant account.

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Up in Smoke: The Ohio Banking Industry is Trying to Shut Down Marijuana Legislation

medical marijuana payment processingWe all know that banks hate legalized marijuana merchants, be it recreational or medical. These industries are “high risk”, and God forbid that one actually succeeds. The Ohio Banker’s League recently voted to knock down Issue 3 which would legalize both medical and recreational marijuana in the state. According to the Ohio Banker’s League, they fear a backlash over the clash between Federal illegalization and state legalization, because banks are regulated by the Feds. This is a legitimate quagmire for the banking industry, but it brings forth issues for merchants, if the industry is legitimized in Ohio.

This vote leads to the possibility that is the marijuana industry is legitimized in Ohio, it would be a “cash only” operation. While banking systems have never been fans of “high risk” merchants, the impact of not providing processing capabilities to marijuana merchants could wreak havoc. The volume of sales this industry brings in could help the state, but if it is “cash only”, the state will not reap as many benefits as it would if it were a “regular” processed retailer. For many states, this good has outweighed the negative aspect of being a federally outlawed industry.

If Ohio legalized medical and recreational marijuana, merchants will not only have to locate a marijuana payment processor, but many will eventually need marijuana business funding. Since banks will not be handing out loans, and few of us have a rich uncle, the search for a marijuana business funding source can be tough. There are companies available, such as MMA, that provide marijuana business funding. Some younger merchants in other states are getting creative with their funding search, using GoFundMe and other online fundraising sites to kick start their search. The problem with GoFundMe and other sites is that they can be at the mercy of the Feds, since money can be donated from people in other states – and even other countries.

While the Ohio Banker’s League opposes marijuana legalization, many in the state are in favor of this lucrative venture. Only time will tell if it is legalized, but if it is merchants will need to make sure that they find a good marijuana merchant account, as well as a marijuana business funding source, because the banking industry will not be catering to their new businesses. The search can be tough and long, but it is necessary to make sure that your business account is in the right hands.

Contact us for Marijuana Business Funding today!

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