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Meaningful enough that whole businesses have been based on it. The trouble with payment processing isn't equivalent to legality. See adult entertainment.

godelski 3y ago
> Meaningful enough that whole businesses have been based on it. What's the highest valuation of any of those companies? Now what percentage of MasterCard's current 380 billion market cap or Visa's 485 billion market cap is that? There's other factors with porn at play that have been discussed. But yeah, I don't think a multi-hundred billion dollar company is going to risk having all its assets seized for engaging in activities that are considered illegal by the federal government. Small companies can take this risk. These aren't the same.
- paulddraper 3y ago
  > What's the highest valuation of any of those companies? Green Thumb Industries. [1] Current market cap $1.6 billion. [2] Look, you're right: the federal prohibition definitely has consequences. But also, there are 8 and 9-figure companies operating in this space. [1] https://www.gtigrows.com/ https://www.gtigrows.com/ [2] https://finance.yahoo.com/quote/GTBIF https://finance.yahoo.com/quote/GTBIF
  - godelski 3y ago
    Honestly that figure makes the argument of legalization more compelling. Taxes Fwiw, my argument is that compared to Visa or Mastercard, you weren't going to find a company that has anywhere near the valuation. You're still well under 1% of either of them, and pointing to a company that's been around just under a decade. I'm not saying they aren't big, just that the risk to Visa and Mastercard is very high and it would be idiotic to risk all that just to accept payments for weed.
    - paulddraper 3y ago
      Sure, not many companies compare to Visa/Mastercard valuation. Kinda meaningless comparison. E.g. the largest tomato producer in the U.S. is Lipman and they have ~$350 million [1] revenue, with probably a 1x multiple. [1] https://www.zoominfo.com/c/lipman-family-farms/346563103 https://www.zoominfo.com/c/lipman-family-farms/346563103
zamadatix 3y ago
Businesses were based off of it when it was completely illegal at all levels too, they just couldn't be as public about it. These businesses are still limited quite heavily by the lack of federal legalization, and in more ways than just payment processing.

godelski 3y ago

> Meaningful enough that whole businesses have been based on it. What's the highest valuation of any of those companies? Now what percentage of MasterCard's current 380 billion market cap or Visa's 485 billion market cap is that? There's other factors with porn at play that have been discussed. But yeah, I don't think a multi-hundred billion dollar company is going to risk having all its assets seized for engaging in activities that are considered illegal by the federal government. Small companies can take this risk. These aren't the same.

paulddraper 3y ago
> What's the highest valuation of any of those companies? Green Thumb Industries. [1] Current market cap $1.6 billion. [2] Look, you're right: the federal prohibition definitely has consequences. But also, there are 8 and 9-figure companies operating in this space. [1] https://www.gtigrows.com/ https://www.gtigrows.com/ [2] https://finance.yahoo.com/quote/GTBIF https://finance.yahoo.com/quote/GTBIF
- godelski 3y ago
  Honestly that figure makes the argument of legalization more compelling. Taxes Fwiw, my argument is that compared to Visa or Mastercard, you weren't going to find a company that has anywhere near the valuation. You're still well under 1% of either of them, and pointing to a company that's been around just under a decade. I'm not saying they aren't big, just that the risk to Visa and Mastercard is very high and it would be idiotic to risk all that just to accept payments for weed.
  - paulddraper 3y ago
    Sure, not many companies compare to Visa/Mastercard valuation. Kinda meaningless comparison. E.g. the largest tomato producer in the U.S. is Lipman and they have ~$350 million [1] revenue, with probably a 1x multiple. [1] https://www.zoominfo.com/c/lipman-family-farms/346563103 https://www.zoominfo.com/c/lipman-family-farms/346563103

zamadatix 3y ago

Businesses were based off of it when it was completely illegal at all levels too, they just couldn't be as public about it. These businesses are still limited quite heavily by the lack of federal legalization, and in more ways than just payment processing.