Indianapolis, IN: Hoosiers spend an estimated $2 billion annually on marijuana products, according to an analysis commissioned by the Richard M. Fairbanks Foundation and conducted by the RAND Corporation.
The report specifies that Indiana residents often drive to neighboring states that have legalized marijuana to purchase cannabis products. Cannabis is not legal in Indiana for either medical or adult-use purposes.
The report further estimates that the state spends up to $20 million annually enforcing marijuana prohibition. Conversely, the report’s authors estimate that regulating adult-use cannabis sales in Indiana would yield $180 million in new annual revenue.
In 2024, marijuana-related arrests in Indiana comprised nearly half of all drug arrests. Black residents were arrested at approximately four times the rate of Whites – a finding that is consistent with racial disparities documented in other states.
Under Indiana state law, possessing any amount of cannabis is classified as a criminal misdemeanor, punishable by up to 180 days in jail and a $1,000 fine.
According to statewide polling data provided earlier this year by Ball State University, 59 percent of Hoosiers support legalizing marijuana for adults.
Full text of the report, “Indiana’s Cannabis Landscape & Policy Considerations,” is available from the Richard M. Fairbanks Foundation.