In 2023, Delaware took a major step forward in cannabis reform by legalizing recreational use, raising expectations among consumers and entrepreneurs for a thriving new industry. However, nearly two years later, the state has yet to see its first licensed dispensary open for business. The question on everyone’s mind is: what’s causing the delay?
The Road to Legalization
Delaware’s legalization process was far from straightforward. In April 2023, Governor John Carney allowed House Bill 1 (HB 1) and House Bill 2 (HB 2) to become law without his signature. HB 1 made possession of up to one ounce of cannabis legal for adults 21 and older, while HB 2 laid out the regulatory and tax structure for a controlled marketplace. With this move, Delaware became the 22nd state to legalize recreational cannabis, sparking anticipation for an economic boost and expanded access.
Establishing the Regulatory Framework
To oversee the industry, the state created the Office of the Marijuana Commissioner (OMC), tasked with drafting regulations and overseeing licensing. After months of development, final regulations were published in September 2024. Delaware then introduced a lottery system to distribute 125 licenses, including 30 retail dispensary permits across the state: 14 in New Castle County, 10 in Sussex, and six in Kent. In addition, seven existing medical dispensaries were granted conversion licenses, allowing them to transition into the recreational market.
Federal Roadblocks: Background Check Delays
One of the biggest hurdles preventing dispensaries from opening has been the extensive background check process required for license holders. The OMC is still awaiting final approval from the FBI for fingerprint-based background checks, an essential step before issuing conditional licenses. According to Keila Montalvo, the OMC’s Community Relations Officer, this federal delay has been a major stumbling block in getting the market up and running.
Zoning and Local Restrictions
Even if the licensing process were moving faster, local zoning laws present another major challenge. Nearly a third of Delaware’s cities and towns have enacted outright bans or restrictive regulations on cannabis businesses. For example, Sussex County has effectively shut out retail dispensaries through strict zoning policies. Additionally, popular towns like Rehoboth Beach, Dewey Beach, and Milton have opted out of allowing cannabis businesses, while Wilmington is considering imposing strict rules of its own. These local restrictions limit where businesses can set up shop, further slowing the rollout of dispensaries.
Economic Impact and Social Equity Challenges
Delays in launching the cannabis market are not just frustrating for consumers—they also carry economic consequences. Entrepreneurs who have invested in the industry are left in limbo, while the state has been unable to distribute $4 million in social equity grants earmarked for individuals impacted by previous cannabis enforcement. These funds were supposed to help disadvantaged applicants establish businesses in the new industry, but without dispensaries opening, that financial support remains out of reach.
Growing Frustration in the Community
Business owners, industry advocates, and consumers are growing increasingly impatient. James Brobyn, president of the Delaware Cannabis Industry Association and a conversion license recipient, voiced his frustration: “We’re just waiting with no clear timeline on when we can finally open.” This sentiment is widely shared, as the state’s cannabis industry remains in a standstill with no definitive date for when dispensaries will be operational.
What’s Next?
As it stands, the OMC has yet to announce when the first legal cannabis sales will take place. The combination of federal processing delays and local government restrictions has created a complicated situation that will require coordinated efforts to resolve. Despite the setbacks, industry stakeholders remain hopeful that Delaware will soon overcome these barriers and establish a successful, regulated cannabis market.