Delaware Awards First Cannabis Cultivation and Manufacturing Licenses in Initial Lottery

LOS ANGELES- Delaware has initiated its adult-use cannabis licensing process, awarding the first cultivation and manufacturing permits through a lottery held on October 24, 2024. This inaugural lottery, organized by the Office of the Marijuana Commissioner (OMC), drew from over 1,260 applications to randomly allocate licenses across cultivation, manufacturing, and social equity categories for the state’s three counties. However, due to high demand, the OMC will hold a separate lottery in December specifically for retail licenses, which received over 800 applications for 30 available slots.

The OMC’s structured approach divides licenses into categories based on business size and social equity qualifications. Notably, some jurisdictions have imposed specific zoning regulations; for instance, Wilmington has proposed a 300-foot buffer zone around residential areas, while Sussex County’s three-mile restriction around municipalities and other sensitive areas could significantly limit cannabis business locations.

This rollout is part of Delaware’s larger strategy to align with other Northeastern states in offering legal adult-use cannabis sales, anticipated to commence by March 2025. Additionally, Governor John Carney recently enacted protections for financial institutions working with licensed cannabis businesses, signaling further support for the industry’s integration into the state economy.