At trade shows, members of the Cannabiz Media group are frequently tested with challenging to answer inquiries from people today who want to uncover information and facts on cannabis market pros, licenses, and businesses from all the information that we track. We generally have the answers they’re seeking for, and we find out a lot about what the market place values in these conversations.
For the final six months or so, we’ve been flipping the query more than and asking people today which state has the most dispensaries and other license kinds. The answer we nearly invariably hear is California or Colorado.
But that is not correct. Neither California nor Colorado has the most licensed cannabis dispensaries
Oklahoma, the Panhandle State, took that mantle this spring when it surpassed California. The variations in numbers of licensed cannabis dispensaries in Oklahoma compared to California are astonishing, specially provided the population variations.
The numbers above are drawn from the Cannabiz Media License Database and contain only active licenses. This is an vital distinction as California has had several of their short-term licenses expire all through 2019.
What is even far more astonishing is that California’s population is ten instances the size of Oklahoma’s! This translates into a single dispensary for each two,356 people today in Oklahoma versus a single for each 67,972 people today in California.
How Did We Get Right here?
There are a quantity of trends driving this disparity in the quantity of licensed cannabis dispensaries in Oklahoma versus California. History and regulatory complexity are each at play right here.
California has had a healthcare marijuana plan/infrastructure officially for more than 20 years. The state legalized cannabis in 1996, and as a outcome, the state became well-known as a spot exactly where it is effortless to get cannabis. Nevertheless, when adult use was authorized, the state had the pretty difficult process of attempting to harness this massive marketplace.
The scheme regulators came up with had more than 100 unique license kinds with distinct designations for short-term, provisional, and annual variations. Covered activities incorporated the normal 4 of testing, cultivation, manufacturing, and dispensing along with delivery, distribution, and microbusiness licenses.
Oklahoma has a a lot shorter history in terms of cannabis regulation. The state began to problem the very first state licenses in August 2018, 10 months immediately after California. Oklahoma only issued them for cultivation, manufacturing, and dispensing.
Additionally, the complexity of the licenses was significantly less than what was essential in California, and the charge was only $two,500. The chart under illustrates the variations amongst the two states displaying Oklahoma costs versus the highest doable charge in California.
Also, the Oklahoma Health-related Marijuana Act explicitly restricts cities from taking action in relation to the implementation and regulation of activities associated to healthcare marijuana in the state. This is fairly unique than in California exactly where complete counties have opted out of possessing licensed corporations inside their borders
So What Does it Imply?
We doubt there are several corporations that are deciding regardless of whether to enter the cannabis market in California or Oklahoma, but the evaluation above does highlight the patchwork of guidelines and regulations that can build anomalies like Oklahoma possessing far more licenses than California.
Quite a few of these Oklahoma corporations will in all probability not survive and some have recommended that lots of newly bought develop light systems and other hardware will be for sale on Craigslist and eBay prior to as well lengthy.
In addition to the variations in the licensing program’s costs and complexities, there are also vast variations in populations. California’s 34 million people today is roughly ten instances the quantity of people today in Oklahoma. Patient counts show related disparities exactly where Oklahoma has 153,000 sufferers to California’s 1.two million – and that does not even count all the adult-use shoppers in California.
To Oklahoma’s credit, it is making regulatory structures to help the plan that contain requiring particular license holders register with other regulators like the Workplace of Narcotics & Risky Drugs Handle and the Division of Overall health
Business consultant Avis Bulbulyan lately commented on the internet about the healthier quantity of applications received in the state of Missouri for its upcoming plan. He believed the groundswell was in line with other states that obtain, “7-10 instances the quantity of applications compared to licenses obtainable.”
While Oklahoma has no limits to its cannabis licenses, will the population settle down to 1/7 to 1/10 the licenses that have been issued, which would translate into 167 to 250 dispensaries? We feel it is a possibility and also note that the multi-state operators didn’t rush into the Oklahoma licensing frenzy.
Cannabiz Media will continue to track the licenses in Oklahoma, and everywhere else, to aid our consumers track the expansion and contraction in markets worldwide. Schedule a demo of the Cannabiz Media License Database to see how the incorporated information, insights, CRM, and advertising tools can aid you attain your small business objectives.
Ed Keating is a co-founder of Cannabiz Media and oversees our information investigation and government relations efforts. He has spent his complete profession operating with and advising information and facts businesses in the compliance space. Ed has overseen complicated multijurisdictional item lines in the securities, corporate, UCC, security, environmental and human resource markets and focuses on workflow solutions. Ed has spent the final twenty 5 years in the information and facts market. For the duration of that time he has worked for each startup and established information and facts businesses exactly where he has led advertising, item management and sales organizations. These businesses contain Wolters Kluwer/Commerce Clearing Property, CT Corporation, EDGAR On line and Small business & Legal Reports. At Cannabiz Media Ed enjoys the challenge of operating with regulators across the nation as he and his group collect corporate, economic, and license information and facts to track the people today, solutions and corporations in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg College at Northwestern University. He has been active with the Application & Information and facts Business Association for his complete profession and managed the Content material Division for six years. He’s was lately a Trustee at the Nation College in Madison CT and a Tiny League Coach for seven years.