Vermont Halts New Cannabis Retail Licenses

LOS ANGELES- Vermont’s Cannabis Control Board has temporarily stopped accepting new retail cannabis license applications, citing concerns about market saturation in certain regions. The pause, which takes effect on October 25, comes after issuing just over 90 retail licenses in less than two years. The Board aims to reassess market dynamics and will draft new rules to regulate geographic distribution based on population, following recent legislative changes.

The move is intended to prevent oversaturation, particularly in areas like Burlington, which has a disproportionate number of cannabis retailers compared to neighboring cities that have opted out of allowing sales. Under Vermont law, recreational cannabis sales are only permitted in communities that vote to allow them, leading to an uneven distribution of dispensaries.

The Board has also paused new applications for certain cultivation licenses but left the smallest-tier licenses unaffected. Current applicants will have a limited window until mid-November to complete the licensing process.

This approach mirrors actions taken in other states like Oregon, where market oversaturation led to financial struggles for many cannabis businesses. Vermont’s regulators aim to avoid similar pitfalls by carefully managing the growth of the industry to protect both existing businesses and consumers.

Some industry players have expressed concerns, arguing the market should determine the number of viable businesses. However, the Board believes the pause will allow for a more sustainable market environment.

While the Board has not set a date for reopening applications, it intends to address market imbalances before doing so.