Leonardo Munoz / AFP via Getty Images
Leonardo Munoz / AFP via Getty Images
Leonardo Munoz / AFP via Getty Images
Aired; May 20th, 2025.
Listen to the podcast to hear the full conversation.
Since Pennsylvania legalized medical marijuana in 2016, the cannabis industry has grown quickly—but not without growing pains. In a recent interview on WITF’s The Spark, host Asia Tabb sat down with Judith D. Cassel, a leading attorney and advisor for cannabis companies, to explore how the legal landscape has evolved and what misconceptions still cloud this rapidly expanding market.
Cassel, who co-founded Cannabis Law Solutions the year the state legalized medical marijuana, said what drew her to the industry was the rare opportunity to shape an entirely new area of law.
“Lawyers deal in decades, if not centuries-old areas of law,” she explained. “With medical marijuana, it was a chance to really learn and practice in an area that’s brand new.”
Her firm, now with a team of specialists in regulatory, appellate, and administrative law, represents cannabis clients across the country. While headquartered in Pennsylvania, the group also holds licenses in Ohio, New Jersey, Maryland, New York, North Carolina—and soon, Kansas.
“We have about a dozen to two dozen clients in Pennsylvania alone,” Cassel said. “But we also work with clients in Oregon, Oklahoma, Utah, Illinois—and beyond.”
One of the core challenges of advising cannabis businesses, Cassel noted, is the fractured nature of regulation. Because cannabis remains illegal at the federal level, each state has had to create its own rules from the ground up.
“Each state is likely to be very different in how they approach it,” Cassel said. “Some states will put more emphasis on criminal justice and social equity. Others have a very hands-off approach and let people act as they would in any other kind of industry.”
One of the most persistent misconceptions about the cannabis business? That it’s a cash cow.
“People think cannabis companies make tons of money,” Cassel said. “But the reality is, they have to pay taxes on their gross profit, not net. They don’t get to deduct labor, utilities, or other basic expenses. That puts them at what’s essentially an 85% tax bracket.”
This misunderstanding, she explained, has a ripple effect. Vendors often mark up prices with a so-called “cannabis tax,” assuming these companies can afford the premium.
Starting a cannabis business is not only complex—it’s extremely expensive.
“To build a grow facility takes about $15 million, minimum,” Cassel said. “That doesn’t include operating costs. Dispensaries can cost a million and a half to build out.”
Much of that is driven by strict regulatory requirements. “There’s more security at a cannabis dispensary than there is at a CVS,” she said. “High fencing, security cameras, biometric scans—it adds up fast.”