Delaware Awards 15 Retail Licenses for Marijuana Dispensaries
The state of Delaware has cleared a major hurdle in its journey to legalizing recreational marijuana, with the awarding of 15 retail licenses to dispensaries. The licenses were granted through a lottery system, with three going to Kent County, five to Sussex County, and seven to New Castle County.
The lottery process was conducted on December 19, with 529 applications submitted by interested parties. Each application required a $5,000 fee, bringing the total amount of money collected to $2,645,000.
The winners of the lottery will now move on to the conditional licensing phase, which requires them to provide financial and ownership documentation, pass a background check, and enter into a labor peace agreement with a bona fide labor organization. They will also need to comply with local laws and regulations, including zoning, fire codes, and building codes.
The conditional licenses must be converted to active licenses within 18 months, or the license will be rescinded. The state has the discretion to extend the deadline if it believes a licensee is acting in good faith.
The news comes as Delaware’s medical marijuana dispensaries are converting to recreational use. The Newark City Council has already approved the operation of Fresh Delaware as a recreational marijuana facility.
However, the path to legal recreational marijuana is not without its challenges. Some towns and cities, including Middletown, Bethany Beach, Rehoboth Beach, and Lewes, have banned retail marijuana sales outright. Sussex County has implemented strict zoning laws that could limit the number of retail locations.
Wilmington, the state’s largest city, has been slow to regulate the industry, with the city council going back and forth on buffer areas and bans. Dover has also been indecisive, with no official regulations in place.
New Castle County has updated its zoning laws to match state regulations, while Kent County will regulate the industry similarly to tobacco and alcohol retail.
Dispensaries are expected to open their doors to Delawareans in April 2025. However, marijuana remains federally illegal, so the industry will need to operate within state borders.
The state’s marijuana commissioner, Rob Coupe, has indicated that the industry will be evaluated in August 2025, at which point new applications may be accepted.
