In a neck-and-neck financial race, both proponents and opponents of South Dakota’s adult-use cannabis legalization initiative have amassed nearly equal funds, setting the stage for a heated debate ahead of the November 5 ballot. Campaign contributions have surged from both sides, raising a total of about $915,000, which highlights the state’s sharply divided stance on this issue.

Key Donors Fuel South Dakota's Legalization Debate

Proponents of the marijuana legalization ballot measure, Initiated Measure 29, have amassed approximately $458,000 in contributions, largely fueled by the cannabis industry, according to the South Dakota Searchlight. The principal proponent, Yes on 29 Ballot Committee, reported taking in $436,000, with about $300,000 stemming from businesses within the cannabis sector. The largest donation, $100,000, came from GL Partners Inc., a medical marijuana dispensary in Rapid City.

• Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

On the opposing side, the Protecting SD Kids Ballot Question Committee has raised a comparable $457,000, with a significant portion coming from individual donors. Brad Wheeler, a local manufacturer, made the largest individual contribution of $61,400. Contributions from South Dakota-based businesses also played a crucial role, adding $71,000 to the opposition’s fund.

Competing Sides Ramp Up Spending Efforts

This financial tug-of-war underscores the intensity of the debate surrounding Initiated Measure 29, which proposes to legalize the possession, use and distribution of up to 2 ounces of marijuana for adults over 21. It is one of seven statewide ballot questions that South Dakotans will decide on.

Both campaigns have been active in leveraging their funds. The Yes on 29 committee has already spent $217,000 on various advocacy efforts, while the opposition has expended $371,000 in activities aimed at curbing the measure’s passage.

Read Also: North Dakota Ad Campaign Backs Adult Use Cannabis Legalization, Eyeing Economic Gains

Campaign finance reports reveal that the cannabis industry’s investment in legalization efforts continues to be a significant factor in ballot measures across the U.S. Meanwhile, grassroots donations and local business support remain pivotal for those opposing such measures.

As the campaign enters its final days, the nearly even financial playing field suggests a tight race to the ballot box. Both sides are ramping up their efforts to sway voters, knowing that the outcome could have far-reaching implications for marijuana policy in the state.

Economic Gains Drive Cannabis Debate Nearby

Neighboring states North Dakota, Nebraska and Montana each reflect a variety of approaches to cannabis reform that influence South Dakota's own legalization debate. While Montana reaps substantial tax revenue from legalized cannabis – over $118 million in two years – North Dakota is eyeing similar gains through Measure 5, targeting economic benefits and job growth. Nebraska, however, remains without legalization efforts, underscoring regional divides on cannabis reform as states weigh economic advantages against conservative values.

With no cap on donation amounts, South Dakota's marijuana legalization debate signals a high-stakes vote next week.

Read Next:

• Cannabis Stocks Sink Amid Broader Market Decline And Election Jitters

Image created with AI tools.