Don't underestimate the power of sin taxes in relation to other states. California would be the only state with legalization and would pull interested tourists from across the country. Their market would effectively be the entire US with no legal means of competition for tax revenue.
The same thing happens with alcohol and cigarette taxation: a lot of people will cross state lines for the cheap smokes of NC or better alcohol of nearby states, if they are within proximity to the states border. This effect is particularly noticable in driving across the country and having the chance to see the businesses that exist next to state lines selling these items.
Another similar situation is that of casinos. The states that allow unfettered gambling in certain areas (table games, slots, etc.) have their casinos built in nexus points of travel near states with more conservative laws.
The same thing happens with alcohol and cigarette taxation: a lot of people will cross state lines for the cheap smokes of NC or better alcohol of nearby states, if they are within proximity to the states border. This effect is particularly noticable in driving across the country and having the chance to see the businesses that exist next to state lines selling these items.
Another similar situation is that of casinos. The states that allow unfettered gambling in certain areas (table games, slots, etc.) have their casinos built in nexus points of travel near states with more conservative laws.