Starting this week, adult-use sales will begin in Ohio. Last Friday, the Division of Cannabis Control (DCC) announced its plan to issue the first dual-use operation licenses to dispensaries on Tuesday. This follows the agency's recent preliminary approval for medical marijuana dispensaries, growers, and processors seeking to join the adult-use market. As of the end of July, the DCC has issued 66 of 86 dual-use licensees that applied for permits in cultivation, processing, & testing laboratories.

Dual Licensing for Current Medical Operators

All provisional licensees Businesses with a provisional license must do the following before they can receive final approval:

Notify local officials and law enforcement of their new status as an adult-use cannabis business.
Ensure that all security equipment is up to date and meets the DCC’s adult-use standards.
Train employees in all new regulations.
- For dispensaries, their staff must also pass a test to show they can properly distinguish and sell medical and adult-use products.

The new framework will prioritize the inclusion of current medical cannabis businesses in the adult-use market. Regulators will initially dual license the 136 (126 active) medical dispensaries currently authorized and operating in the State. Those same dispensaries, and other medical cannabis licensees, will also be able to open adult-use cannabis dispensaries later in the process as follows:

Type 1 Medical Cannabis Cultivators can open up to 3 dispensary locations.
Type 2 Medical Cannabis Cultivators can open up 1 dispensary location.
Medical Cannabis Dispensaries can open up 1 additional dispensary locations.

The DCC will then be tasked with issuing an additional 40 adult-use cultivator licenses and 50 adult-use retailer licenses to new licensees, with a preference for applicants who participate in the cannabis social equity and jobs program. After two years of operation, regulators will have the authority to issue additional licenses for the recreational market. However, there have yet to be any announcements as to the timeline and licensing process associated with these new adult-use licenses due to disagreements in the State legislature over proposed statutes and limitations to these programs.

Market Outlook

All of the above is major news for a state that saw $484 million dollars in medical cannabis sales in 2023 alone. Analysis conducted by cannabis research firm New Frontier Data estimates that the state's cannabis market could grow to nearly $2 billion in adult-use sales in 2028 with another $460 million in medical sales. With those types of opportunities, it is little wonder there is so much focus on the State of Ohio’s adult-use cannabis industry launch.

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