Massachusetts Could Kill Its $1.6 Billion Cannabis Market and Close 300+ Stores, CEO Warns

Massachusetts’ regulated cannabis industry has grown into a dependable part of the state’s economy, built by operators who learned early on how to run lean, earn consumers’ trust, and stay competitive in a market that rarely gives anyone a break. That foundation is now facing a direct threat from prohibitionists.

In November, voters will decide the fate of Question 8, a ballot measure that would repeal adult‑use cannabis sales statewide. If passed, the measure would shut down more than 300 operating adult‑use retailers and halt hundreds more in the licensing pipeline, eliminating a $1.6 billion market and pushing consumers back into the illicit economy. For operators who have spent years building responsible, consumer‑focused businesses, the stakes are significant.

To understand what this moment means for the industry, IgniteIt spoke with Peter Gallagher, CEO and co‑founder of Insa, one of Massachusetts’ most successful independent cannabis companies.

Insa’s Growth And Business Discipline

Insa’s story begins in Western Massachusetts, where Gallagher and co‑founder Pat Gottschlicht launched the company in 2013. What started as a local operation has grown into a multi‑state business with retail and wholesale operations in five states. Gallagher attributes that growth to discipline, measured expansion, and a commitment to reinvesting in the business.

“Back in those early days, it was hard to meet an operator that wasn’t going to be the biggest or be in the most number of states, and all those are always exciting aspirations,” Gallagher explains in an exclusive interview. “They weren’t possible for us because we didn’t have the ability to scale that quickly. We had to do it thoughtfully and one step at a time.”

Being capital‑constrained forced Insa to stay grounded and focus on cash flow from the start. Gallagher said the company grew by staying “very disciplined with how we spent money and allocated capital,” a mindset that still guides decision‑making today. The company’s mission is “to make your day better,” a customer‑focused promise that informs product development and retail operations.

Innovation And Consumer Value

Gallagher noted that today’s consumers are stretched economically, making value a major driver of purchasing decisions. That focus on value also shapes Insa’s product development, including the company’s new offering, Drippers, a fast‑acting THC beverage enhancer designed for customizable dosing.

“We had the opportunity to come in and again deliver more value to the customer and provide a better product to the customer than was currently out there,” said Gallagher.

Drippers were designed to complement the beverage category rather than compete with ready‑to‑drink cannabis beverages, which face logistical challenges to produce profitably in a state‑by‑state system.

Federal Rescheduling And Capital Access

Gallagher also addressed the ongoing federal rescheduling process. While Insa is not making strategic changes until regulations are finalized, he sees clear benefits if cannabis moves to Schedule III. Relief from 280E and better access to banking would immediately change how operators plan and invest.

Gallagher said rescheduling could “lower the cost of capital for a lot of cannabis industries,” opening the door to more sustainable expansion.

The Threat Of Question 8

While federal policy may eventually ease pressure on operators, the immediate threat in Massachusetts is far more urgent. Gallagher did not mince words when describing the stakes of Question 8.

“This is a $1.6 billion-a-year industry that generates $300 million in tax revenue for the state that would be eliminated by this ballot initiative,” he says of the risk Question 8 poses to the Massachusetts economy.

He emphasized that the measure would not eliminate cannabis possession or use. Instead, it would dismantle the regulated market and push consumers into untested, unregulated channels.

“It doesn’t eliminate cannabis,” Gallagher noted. “All it does is eliminate the legal framework and the regulated market and will drive people into the illicit market.”

Gallagher sees the repeal effort as part of a broader push by prohibitionist groups to roll back legalization in multiple states. The Massachusetts initiative was funded by out‑of‑state organizations, and he expects similar efforts to appear elsewhere.

Public Opinion And Industry Response

Recent polling from the UMass Amherst Poll suggests public opinion may be leaning against repeal. According to the survey, 40% of voters say they will definitely vote to keep recreational cannabis legal, and another 15% say they will probably vote against Question 8. Only 15% said they would definitely vote yes, 18% would probably vote yes, and 10% remain undecided with the election just over two months away.

The numbers look promising for opponents of the measure, but Gallagher said the campaign can’t rely on polling alone.

“We want this to be more of an omni‑channel campaign where we’re not just talking to our consumers,” he said, “but talking to the public at large.”

The No on 8 coalition, which includes Insa and several other operators, is working to educate voters about the economic and public‑health consequences of repeal. The campaign’s website, StopTheRepealMA.com, provides information and opportunities for residents to get involved.

A National Push To Reverse Legalization

The Massachusetts repeal effort is part of a broader push by prohibitionist groups, including Smart Approaches to Marijuana, to unwind cannabis reforms across the country. Earlier this year, a similar proposal in Arizona was withdrawn by its sponsor after he learned more about the effects of legalization and the role regulated markets play in public safety.

The withdrawal shows how repeal efforts can lose momentum once voters and policymakers understand the consequences. But Gallagher cautions that Massachusetts cannot assume the same outcome.

The Road Ahead

Question 8 represents a direct threat to one of the state’s most successful regulated industries. While polling suggests the measure may fail, the outcome will depend on turnout and how well voters understand what repeal would mean. Gallagher urged residents to stay informed, participate in the process, and support efforts to protect the regulated market.