Recreational nitrous oxide is a $400 million to $1 billion unregulated market in the United States. A 3.3-liter canister costs $15 at the factory in China and retails for $160 at an American smoke shop — a 967% markup. Under South Carolina's proposed S.751, the maximum fine for selling to a minor is $100. That fine is recovered in 1.3 canister sales.
$100
S.751 MAXIMUM FINE — RECOVERED IN 1.3 CANISTER SALES
The fine equals 0.07% of annual estimated profit per smoke shop
UNIT ECONOMICS
$15
CHINA FACTORY COST
$160
GALAXY GAS MSRP (3.3L)
967%
FACTORY-TO-RETAIL MARKUP
$1
GALAXY GAS TRADEMARK SALE PRICE
MARKET SCALE
$399M
CONSERVATIVE ESTIMATE
$1.09B
MODERATE ESTIMATE
13M
LIFETIME US USERS (NSDUH)
904
SC TOBACCO/SMOKE SHOPS
PENALTY COMPARISON
South Carolina (S.751): $100 maximum fine. No license required. No volume reporting. Louisiana: $25,000 maximum fine. Florida: $5,000 maximum fine (canisters >16g). Georgia: $10,000 maximum fine (sale to minors). New York: Criminal penalties, age verification, signage requirements.
At $375/day in gross profit from N₂O sales, a moderate-volume smoke shop earns the S.751 fine amount in 6.4 hours of operation. The fine is not a deterrent — it is a rounding error.
FINANCIAL ANALYSIS
Complete market size estimates, unit economics breakdown, penalty-vs-profit analysis, and comparison to analogous regulated markets (e-cigarettes, CBD, kratom). Includes South Carolina and Georgia market projections.