All seven medical marijuana operators have converted to adult-use cannabis sales, with over 10 locations, which will be up and running in August.

By Brianna Hill, Spotlight Delaware

Delaware will begin recreational marijuana sales on August 1, state officials announced Tuesday, putting the first definitive date on the start of a long-awaited rollout for the $280 million industry.

Customers on that first day will be heading to existing medical marijuana businesses though, as the burgeoning legal market has yet to develop the dozens of new businesses licensed for recreational-only sales.

That decision has already sparked criticism from advocates and residents, who say it puts other businesses at an unfair disadvantage.

For years, medical marijuana dispensaries have denied that they sought the handful of licenses available at the time in order to get a first-adopter advantage for the eventual recreational market. But now that is occurring.

“The existing medical marijuana dispensaries lobbied for less competition and to begin sales before new businesses, and now, with the [Office of the Marijuana Commissioner]-caused delays, they will end up with first sales and absolutely no competition,” Zoë Patchell, president of the Delaware Cannabis Advocacy Network, which advocated for years for legalization, wrote in a Facebook post.

Delaware medical marijuana dispensaries

Jacob Owens, Spotlight Delaware / Source: Delaware Office of the Marijuana Commissioner / Created with Datawrapper

• First State Compassion–Wilmington, 37 Germay Drive, Wilmington http://firststatecompassion.com
• First State Compassion–Lewes, 12000 Old Vine Blvd., Unit 102, Lewes
• http://firststatecompassion.com
• Fresh Cannabis, 635 N. Dupont Blvd., Milford
• https://freshdelaware.com/
• Columbia Care Delaware, 200 S. DuPont Blvd., Smyrna
• https://col-carede.com/
• Columbia Care Delaware, 5606 Concord Pike, Wilmington
• https://col-carede.com/
• Columbia Care Delaware, 36725 Bayside Outlet Drive, Suite 760, Rehoboth Beach
• https://col-carede.com/
• Field Supply, 4543 Kirkwood Highway, Wilmington
• https://thefieldsupply.com
• Fresh Cannabis, 800 Ogletown Road, Newark
• https://freshdelaware.com/
• Fresh Cannabis, 22983 Sussex Highway, Seaford
• https://freshdelaware.com/
• The Farm, 105 Irish Hill Road, Felton
• https://www.thefarmde.com 
• The Farm, 240 S. Dupont Highway, New Castle
• https://www.thefarmde.com 
• Best Buds, 516 Jefferic Blvd., Dover
• https://www.bestbuds.com
• Best Buds, 23 Georgetown Plaza, Georgetown
• https://bestbuds.com

Delaware’s adult-use marijuana industry, which was legalized in 2023, allowed for 125 licensees to operate throughout the state across cultivation, manufacturing, testing and retail sales. The operators were chosen at the end of last year through a lottery system that saw more than 1,200 individuals apply.

Entering the licensing lottery alone required individuals to submit detailed applications and fees. Most application fees cost $5,000, with the active license itself costing up to $10,000.

Medical marijuana operators seeking to enter the recreational market were required to pay steep conversion fees—$100,000 for retail or manufacturing licenses and $200,000 for cultivation.

The state used the revenue to create a $4 million reimbursement fund for social equity applicants, defined as individuals with prior marijuana-related convictions or those from communities disproportionately impacted by prior marijuana enforcement.

Since March, business operators have been awaiting clarity from the Office of the Marijuana Commissioner (OMC), the state office in charge of regulating the industry, on when sales could legally begin.

The market’s launch was originally slated for April but faced delays after the state failed to secure FBI approval to conduct background checks on licensees.

As of June 18, 43 individuals have cleared their background checks, according to OMC spokeswoman Keila Montalvo. The office did not respond to requests for information on how many conditional licenses have been issued.

Even as an official date is set, state lawmakers are still trying to revise the law that made recreational sales legal.

The law permitted municipalities to prohibit marijuana businesses from their jurisdictions and gave counties broad authority to dictate where they could locate, but those allowances have led a third of Delaware towns and cities to opt out of allowing marijuana shops and Sussex County to place significant restrictions on locations.

A bill to lessen those restrictions has passed both the House and Senate and now awaits consideration from Gov. Matt Meyer (D).

All seven medical marijuana operators have converted to adult-use cannabis sales, with over 10 locations, which will be up and running in August.

Given the ongoing barriers faced by other licensees, including strict local zoning rules, delayed funding for social equity applicants and pending conditional license approvals, the early start for medical marijuana businesses could give them a major head start in shaping the market.

“Our focus is on building a safe, equitable, and accountable marijuana market that delivers real benefits to Delawareans. We will continue to issue conditional licenses to previously selected applicants to ensure they can begin operations once active,” Joshua Sanderlin, Delaware’s new marijuana commissioner, said in a statement.

This story was first published by Spotlight Delaware.

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