The ABC-affiliated TV station in Denver, KMGH, was scheduled to air advertisements on Monday, July 20, for legal cannabis businesses during the “Jimmy Kimmel Live” broadcast at 10:35 p.m. That plan was put on hold Friday as lawyers for the station owners, The E.W. Scripps Co. (NYSE: SSP), review the issue.
The likeliest reason for the delay is that marijuana possession and use is still contrary to federal law, and Scripps does not want to run afoul of possible federal penalties nor does it want to jeopardize its relationship with its other suppliers.
For example, most banks will not offer business accounts to legal marijuana businesses for fear of being slapped with racketeering or trafficking or some other federal crime. The Denver station uses federally licensed airwaves, and using those airwaves to transmit advertising for a product that remains illegal under federal law risks the station’s ability to continue broadcasting.
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