- The 2020 election ushered in a wave of legislation concerning several burgeoning industries, including cannabis, psilocybin (or psychedelics), contract labor, and sports betting.
- New laws legalized drug use and sports gambling in a variety of states, and confirmed that contract laborers in California would not be classified as employees.
- Much of this new legislation presents business opportunities for entrepreneurs; in other cases, such as the passage of sports gambling legislation, the new laws will likely consolidate economic power in the hands of existing players.
- Business Insider has compiled a list of the new industries unlocked by legislation passed in the 2020 election that entrepreneurs can take advantage of.
- Visit Business Insider’s homepage for more stories.
In addition to its historic presidential race, the 2020 election has also ushered in a wave of new legislation, whose business ramifications for the psychedelics, cannabis, and contract labor industries could open legal pathways for new entrepreneurial ventures.
In Oregon, residents voted to decriminalize drugs like cocaine and heroin, as well as to legalize the administered use of some psychedelics. In California, voters lent their support to a proposition that allowed ride-hailing companies like Uber and Lyft to continue the practice of classifying their drivers as contract workers. Some measures, such as the legalization of cannabis, passed in multiple states, including South Dakota, New Jersey, Mississippi, New Mexico, and Montana.
These initiatives all present opportunities for entrepreneurs, who now have a chance to claim ownership in these emerging industries.
However, not all of these newly greenlit industries spell fortune for entrepreneurs. Voters in South Dakota, Louisiana, and Maryland voted to approve sports gambling, joining 25 other states and Washington, D.C., in doing so, though the industry offers little potential for small businesses. Gambling websites like FanDuel and DraftKings control the majority of online betting, and casino groups dominate the physical markets, says Victor Matheson, an economist at the College of the Holy Cross who studies sports, gambling, and their intersection.
“This new legislation is good for betters, consumers, leagues, casinos, and the apps, but it is almost certainly not a win for small businesses,” said Matheson.
Nonetheless, the 2020 election has opened up a suite of new business opportunities for small business owners across the country. Below is a list of these new economies, as well as ways for entrepreneurs to cash in on them.
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