This is not unexpected, given the CA plan was that legalizing pot would be their tax cash cow. What's interesting is that it looks like Newsom is going to help them out - something you would not see him doing for most other industries.
https://news.yahoo.com/california-pot-companies-warn-impending-202704687.html?guccounter=1Part of the claim is that illegal pot sells for half of what legal pot does. Interestingly, I recently read that the Oregon pot industry is also being hit by black market sales, but OR has much more lenient regulations and taxes for pot than does CA, and they are still making money (both legal pot shops and the state and cities) hand over fist.
On the tangent, I find I have been flip-flopping regarding my views on legal drugs. For a very long time, I was very much against legal drugs. Then as I got older I got a little more libertarian, and a combination of "who cares what other people do?" and a hope that things like no-knocks, that pretty much started via the war on drugs, might be reduced got me at least a little pro-legal drugs.
Now I'm back to being against them, and it's all from what I've seen over the border from me in Oregon. I go to Ontario OR a good bit. When I first moved here a few years ago, I didn't give a second thought to leaving my car unlocked pretty much wherever I went in Ontario. Now I constantly lock the car and also make sure to stay in condition yellow. Why? Pot shops. In just a couple of years of the dozen or so pot shops in this city, crime has gone up like crazy.
They are having more car thefts than ever before, more robberies, and you can see a whole new demographic of unsavory characters that have shown up in that city. Yet it's okay with the city council, because pot is making the city rich. They apparently sell more pot in Ontario than they do in Portland (partially thanks to Idaho potheads). You didn't see this when people were illegally buying their pot from the guy on the street.
Watching the quality of life deteriorate in this way has me going back to my old conservative ways.