That's is roughly my take on the situation. Until it is legal nationally, it is much too risky to make big money investments that would produce at scale, which would compensate for the thinner margins. At this point in time, you essentially have backyard growers competing against each other and those that stay on the black market can compete at lower prices and with higher margins.
If Washington and Colorado both make efforts to punish dealers who don't comply with state law, then that might push the risk-reward balance further to the legal side of things.
If Washington and Colorado both make efforts to punish dealers who don't comply with state law, then that might push the risk-reward balance further to the legal side of things.