CLEVELAND –One year after Ohio launched its recreational marijuana program, the industry has shown financial success while navigating significant regulatory challenges.

By year’s end the state could realize as much as $1 billion in recreational marijuana sales – money that would have otherwise gone to the illicit market or into the pockets of Michigan dispensary owners.

Nearly 110,000 pounds of marijuana flower were sold, as of early this month. Another 11.8 million units of manufactured product, ranging from single vape cartridges to packages of gummies, had been sold.

Through July the state had collected more than $62.4 million via a 10% tax on recreational sales.

Yet growing pains persist. Business owners are grappling with restrictive regulations, the ongoing state rollout, and competition from unregulated hemp products.

Here are six takeaways from the state’s cannabis journey so far.

Sales are booming, but regulations are still catching up

Ohio could hit close to $1 billion in recreational marijuana sales by the end of the year. Since legal sales started last August, dispensaries have moved nearly 110,000 pounds of marijuana flower and 11.8 million units of manufactured products like vape cartridges and gummies. The state has already collected more than $62.4 million through July with its 10% tax on recreational sales.

But even after a year, not all the rules are set in stone: take pre-rolls, or joints, for example. Dispensaries couldn’t sell joints for most of the first year because state guidance on the product had not been finalized. However, the Ohio Department of Commerce’s Division of Cannabis Control recently released guidance on selling them, and they have begun to shelves in some dispensaries across the state.

Ohio dispensaries can’t compete with Michigan on marketing

Ohio’s advertising rules are more restrictive than those in neighboring Michigan. The restrictions carried over from the medical marijuana program mean dispensaries can barely promote their products, while Michigan dispensaries are free to advertise however they want.

“Michigan dispensaries can advertise for recreational purposes. They can run all kinds of sales and discounts and can offer samples and just all kinds of stuff that we aren’t able to do,” said Pete Nischt, vice president at Klutch Cannabis.

Hemp products are undercutting licensed dispensaries

Another challenge cited by industry experts is the comparatively unregulated intoxicating hemp market.

These products contain THC derived from hemp, not marijuana, and are therefore not subject to the same rules governing licensed cannabis businesses.

“The intoxicating hemp market, I think it’s fair to say, has adversely impacted the licensed marijuana market,” said Tom Haren, a partner at Frantz Ward LLP. “There is basically no regulation on the retail sale of intoxicating hemp products.”

People are still getting used to legal weed

After decades of prohibition, some Ohioans are still hesitant about the legal market. Industry experts say it’s going to take time for people to warm up to legal cannabis and for businesses to gain public trust. “We’re just now at the tip of the spear coming out of almost 100 years of really intense prohibition,” Nischt said.

Lawmakers could still change the rules

The Ohio Senate passed Senate Bill 56 in February, which would make some big changes to the voter-approved law. It would reduce THC levels in marijuana extracts from 90% to 70%, cap the number of dispensaries at 400, and ban smoking in most public places. The bill is currently stuck in the House Judiciary Committee.

More dispensaries are coming

Ohio currently has 159 licensed dispensaries serving both medical and recreational customers. Industry experts expect more dispensaries to open by the end of the year and into 2026, which should mean better access for consumers and lower prices.