Which State Has the Most Licensed Cannabis Dispensaries? The Answer May well Surprise You


At trade shows, members of the Cannabiz Media group are typically tested with tough to answer inquiries from folks who want to obtain facts on cannabis market pros, licenses, and organizations from all the information that we track. We generally have the answers they’re hunting for, and we understand a lot about what the industry values in these conversations.

For the final six months or so, we’ve been flipping the query more than and asking folks which state has the most dispensaries and other license varieties. The answer we nearly invariably hear is California or Colorado.

But that is not correct. Neither California nor Colorado has the most licensed cannabis dispensaries

Oklahoma, the Panhandle State, took that mantle this spring when it surpassed California. The variations in numbers of licensed cannabis dispensaries in Oklahoma compared to California are astonishing, specifically provided the population variations.

Copyright © 2019 by CNB Media LLC dba Cannabiz Media
Supply: Cannabiz Media License Database www.cannabiz.media 09/09/19

The numbers above are drawn from the Cannabiz Media License Database and involve only active licenses. This is an critical distinction as California has had lots of of their short-term licenses expire all through 2019.

What is even additional astonishing is that California’s population is ten instances the size of Oklahoma’s! This translates into 1 dispensary for just about every two,356 folks in Oklahoma versus 1 for just about every 67,972 folks in California.

How Did We Get Right here?

There are a quantity of trends driving this disparity in the quantity of licensed cannabis dispensaries in Oklahoma versus California. History and regulatory complexity are each at play right here.

California has had a healthcare marijuana system/infrastructure officially for more than 20 years. The state legalized cannabis in 1996, and as a outcome, the state became popular as a location exactly where it is effortless to get cannabis. On the other hand, when adult use was authorized, the state had the extremely difficult process of attempting to harness this massive marketplace.

The scheme regulators came up with had more than 100 unique license varieties with distinct designations for short-term, provisional, and annual variations. Covered activities incorporated the regular 4 of testing, cultivation, manufacturing, and dispensing along with delivery, distribution, and microbusiness licenses.

Oklahoma has a significantly shorter history in terms of cannabis regulation. The state began to situation the initial state licenses in August 2018, 10 months just after California. Oklahoma only issued them for cultivation, manufacturing, and dispensing.

Additionally, the complexity of the licenses was significantly less than what was essential in California, and the charge was only $two,500. The chart under illustrates the variations involving the two states displaying Oklahoma charges versus the highest attainable charge in California.

OK vs CA license fees

Copyright © 2019 by CNB Media LLC dba Cannabiz Media
Supply: Cannabiz Media License Database www.cannabiz.media 09/09/19

Also, the Oklahoma Health-related Marijuana Act explicitly restricts cities from taking action in relation to the implementation and regulation of activities associated to healthcare marijuana in the state. This is very unique than in California exactly where entire counties have opted out of obtaining licensed corporations inside their borders

So What Does it Imply?

We doubt there are lots of corporations that are deciding no matter if to enter the cannabis market in California or Oklahoma, but the evaluation above does highlight the patchwork of guidelines and regulations that can build anomalies like Oklahoma obtaining additional licenses than California.

Numerous of these Oklahoma corporations will likely not survive and some have recommended that lots of newly bought develop light systems and other hardware will be for sale on Craigslist and eBay prior to as well extended.

In addition to the variations in the licensing program’s charges and complexities, there are also vast variations in populations. California’s 34 million folks is roughly ten instances the quantity of folks in Oklahoma. Patient counts show comparable disparities exactly where Oklahoma has 153,000 sufferers to California’s 1.two million – and that does not even count all the adult-use buyers in California.

To Oklahoma’s credit, it is developing regulatory structures to help the system that involve requiring particular license holders register with other regulators like the Workplace of Narcotics &amp Harmful Drugs Handle and the Division of Overall health

Seeking Ahead

Market consultant Avis Bulbulyan not too long ago commented on the net about the healthier quantity of applications received in the state of Missouri for its upcoming system. He believed the groundswell was in line with other states that obtain, “7-10 instances the quantity of applications compared to licenses obtainable.”

Despite the fact that Oklahoma has no limits to its cannabis licenses, will the population settle down to 1/7 to 1/10 the licenses that have been issued, which would translate into 167 to 250 dispensaries? We believe it is a possibility and also note that the multi-state operators didn’t rush into the Oklahoma licensing frenzy.

Cannabiz Media will continue to track the licenses in Oklahoma, and everywhere else, to support our consumers track the expansion and contraction in markets worldwide. Schedule a demo of the Cannabiz Media License Database to see how the incorporated information, insights, CRM, and advertising and marketing tools can support you attain your company objectives.


Latest posts