Delaware

Delaware Cannabis | Lottery & Adult-Use Licensing

delaware cannabis lottery

The State of Delaware legalized medical marijuana via legislation in May 2011 with the first compassion center finally making commencing sales under the authority of the Department of Public Health's Office of Medical Marijuana ("OMM") in June of 2015.  It took until 2019 to have four operational compassion centers and another 3 years to reach a total of seven. 


Adult-use cannabis was passed in 2023 via the Delaware Marijuana Control Act and the Office of the Marijuana Commissioner ("OMC") was created to oversee the rollout and absorption of the OMM. There will be a total of 30 retail licenses, 30 manufacturing licenses, 60 cultivation licenses, and 5 testing lab licenses, and all 125 will be awarded by lottery.

1269 applications were received to enter the lottery for new adult-use licenses between 8/16/24 and 9/30/24 and the lottery for most of those licenses will be held on 10/24/24.

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The Delaware adult-use license lottery should begin any moment.


https://www.facebook.com/DOMC1st

Cannabis Lottery Update

The adult-use licensing window opened on Friday, August 16, 2024 and closed on Monday, September 30, 2024 at midnight.  The application is pass/fail and successful entries will be eligible for the October 24th lottery.


The lottery will be streamed live on the Office of the Marijuana Commissioner's Facebook page.


There were 1269 applications for the 11 licenses types across the three counties (NCC 509, Kent 372, Sussex 388), generating $4.2MM in fees.


Because the retail interest was so high (NCC had 333 applicants for 14 licenses, Kent had 244 applicants for 6 licenses, and Sussex had 267 applicants for 10 licenses), the retail lottery will take place in late November or early December. 


delaware cannabis lottery

Of the 125 licenses, eligible social equity applicants ("SEAs") will be vying for 15 retail licenses, 10 manufacturing licenses, 20 cultivation licenses and 2 testing licenses.  


The numbers in RED are the breakdowns by county, NC being New Castle, K being Kent, and S being Sussex.


The 60 cultivation licenses are tiered at 2500 SF and the breakdown of the allocation is as follows:

  • 20 open licenses (all > 2500 SF) NC 9, K 4, S 7 
  • 20 microbusiness licenses (all < 2500 SF) NC 9, K 4, S 7 
  • 10 SE licenses <= 2500 SF NC 5, K 2, S 3 
  • 10 SE licenses > 2500 SF NC 5, K 2, S 3 

The 30 manufacturing licenses are divided amongst:

  • 10 open licenses NC 5, K 2, S 3 
  • 10 SE licenses NC 5, K 2, S 3 
  • 10 microbusiness licenses NC 5, K 2, S 3 

The 30 retail licenses are divided amongst:

  • 15 open licenses NC 9, K 4, S 7 
  • 15 SE licenses NC 9, K 4, S 7 

Current Medical Marijuana Industry in Delaware


The current medical cannabis landscape includes one dozen retails through the state that are owned by six companies and supplied by 10 cultivation facilities and 7 manufacturing facilities. These operators have all applied to convert each component of their vertical medical licenses to adult-use for a conversion fee of $200,000 per cultivation license and $100,000 per retail/manufacturing license.  This money, along with $2,000,000 in additional funding, is earmarked for grants to support the 47 Social Equity Applicants.



To discuss the Delaware cannabis market and the expected adult-use licensing process, particulars, and timeline in detail, call Jamie Campbell today at 302-750-9678

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