The legalization of adult-use marijuana in Delaware was expected to usher in a new era of economic opportunity, but nearly two years later, residents are still unable to purchase cannabis legally. While all 125 licenses for cultivation, testing, manufacturing, and retail have been awarded, new licensees face delays due to an extensive background check process. Meanwhile, medical marijuana businesses are poised to make the transition to recreational sales, raising concerns about an uneven playing field.
Background Checks Favor Established Businesses?
The Office of the Marijuana Commissioner (OMC) has yet to issue active licenses, leaving newly awarded businesses in limbo. According to Zoë Patchell, executive director of the Delaware Cannabis Advocacy Network, this delay could unfairly benefit medical marijuana businesses that already have infrastructure in place. “This entire process has been one step forward, two steps backward, and with no answers, it could be leaving these businesses much farther behind than we initially anticipated,” she said.
Medical dispensaries, which generated nearly $45 million in sales last year, have already completed background checks and await conversion licenses. However, new entrants must undergo a rigorous investigation by the Marijuana Enforcement Unit, which includes financial, tax, civil, and criminal background checks for stakeholders holding 10% or more of an establishment.
Open Retail Licenses and Corporate Influence
Adding to the complexity, concerns have been raised over large national dispensary chains potentially gaining an outsized share of Delaware’s recreational market. Three of the 15 open retail licenses appear to have ties to Mint Cannabis, a national chain based in Arizona. Mint Cannabis has yet to confirm its expansion plans, but its involvement raises questions about the fairness of Delaware’s licensing lottery system.
The Path to Active Licenses
Before new businesses can begin operations, they must complete several steps outlined by the OMC:
- Pay fees associated with background checks
- Submit financial and ownership documentation for approval
- Enter into a labor peace agreement with a bona fide labor organization
- Comply with local zoning, fire, and building codes
- Provide any additional required documentation
Businesses must meet these requirements within 18 months or risk losing their licenses. The OMC may grant extensions for businesses acting in good faith, but failure to meet deadlines will result in revoked licenses.
Industry Uncertainty Amid Leadership Changes
The transition to a fully operational market has been further complicated by leadership changes within the OMC. Rob Coupe, the state’s first Marijuana Commissioner, stepped down in January, leaving Deputy Commissioner Paul Hyland in charge. However, the commissioner position remains vacant, with no nomination announced as of February 7.
Despite the hurdles, some business owners remain optimistic. Patrick Galloway, awarded a license for Whitecap Cannabis in Lincoln, acknowledges the delays but remains patient. “Most of us aren’t ready,” he said, reflecting a sentiment that while setbacks are frustrating, the industry must navigate regulatory hurdles carefully.
Looking Ahead
Delaware’s journey to a fully operational recreational marijuana industry remains uncertain. While background checks are necessary to ensure a responsible market, delays disproportionately impact new businesses while giving existing medical operators a head start. As the OMC works through these challenges, industry stakeholders will be watching closely to ensure an equitable rollout.
Black Cannabis Magazine is your go-to platform for cannabis culture, news, and lifestyle content with a focus on diversity and inclusion. For more information, visit www.blackcannabismagazine.com.
Copyright 2025 Black Cannabis Magazine. Distributed by Hazey Taughtme, LLC.
