Delaware Moves Closer to Adult-Use Cannabis Sales with Lottery Completion

Delaware is gearing up for the launch of adult-use cannabis sales in Spring 2025. The state recently completed a major step in the process, awarding 124 conditional cannabis licenses through a lottery held in October and December 2024. These include 30 retail licenses, which will play a key role in making recreational cannabis available to the public. However, businesses must complete additional steps before these licenses become fully operational.

How the Cannabis License Lottery Worked

The Office of the Marijuana Commissioner (OMC) opened applications for adult-use cannabis businesses earlier than expected, accepting submissions from August 19 to September 30, 2024. The response was overwhelming, with 1,269 applications submitted, generating over $4 million in revenue from application fees alone. The lottery process determined which applicants would receive conditional licenses, marking a significant milestone in Delaware’s cannabis industry.

Legalization Timeline: How Delaware Got Here

Delaware joined the growing list of states legalizing cannabis in April 2023 when Governor John Carney allowed two key bills, HB 1 and HB 2, to become law without his signature.

• HB 1 legalized possession of up to one ounce of cannabis for adults 21 and older but did not include provisions for home cultivation.
• HB 2 created a framework for regulating and taxing cannabis sales, laying the groundwork for Delaware’s legal market.

The legislation gained strong support, passing with supermajority votes in both the House and Senate.

To oversee the industry, Governor Carney nominated Robert Coupe as the state’s first marijuana commissioner in June 2023. His role includes managing regulations, licensing, and enforcement.

Fast-Tracking Sales Through Medical Dispensary Conversions

To accelerate access to recreational cannabis, Governor Carney signed HB 408 into law on July 17, 2024. This allows Delaware’s existing medical cannabis dispensaries, known as “compassion centers,” to apply for conversion licenses, permitting them to sell to both medical and adult-use consumers. While these businesses must meet specific requirements and pay significant fees, they will play a key role in expanding cannabis access.

These conversion licenses will remain valid for 48 months, after which businesses can renew as standard retail cannabis stores.

The Role of Advocacy in Delaware’s Cannabis Policy

The push for legalization in Delaware was largely driven by the Delaware Cannabis Policy Coalition, which has spent years advocating for policy change. Through organized efforts—including lobbying, rallies, and voter outreach—the coalition helped bring cannabis legalization to reality.

Delaware’s Expanding Medical Cannabis Program

Long before adult-use legalization, Delaware had a medical marijuana program in place since 2011. Over the years, the state has worked to improve access for patients. In 2024, Governor Carney signed HB 285, which introduced several key updates:

• Doctors, nurse practitioners, and physician assistants can now recommend cannabis for any condition they believe would benefit from it.
• Patients aged 65 and older can self-certify their need for medical cannabis without a doctor’s recommendation.
• Medical cannabis cards now last two to three years instead of requiring yearly renewal.
• Patients with terminal illnesses receive an indefinite expiration date on their medical cannabis cards.
• Out-of-state medical cannabis patients can now use their cards in Delaware.

Additionally, HB 425 transferred the state’s medical cannabis program under the OMC, allowing for streamlined oversight alongside the adult-use market.

Expungement for Past Cannabis Convictions

Legalization isn’t just about access—it’s also about justice. Delaware has made significant progress in clearing past cannabis-related convictions:

• 2018: SB 197 – Allowed automatic expungement for individuals convicted of possessing up to one ounce of cannabis.
• 2019: SB 37 – Enabled expungement of a single cannabis misdemeanor after five years and a felony after seven years.
• 2021: SB 111 & SB 112 – Introduced automatic expungement for all misdemeanor cannabis possession convictions and certain drug felonies after 10 years.

Since August 1, 2024, Delaware has implemented an automated process for qualifying expungements, ensuring eligible individuals no longer have to go through complicated paperwork.

What’s Next for Cannabis in Delaware?

With adult-use sales set to begin in Spring 2025, Delaware’s cannabis industry is on the verge of significant growth. The lottery process marks a key step, but businesses must still navigate regulatory hurdles before opening their doors. Meanwhile, the expansion of medical cannabis access and automatic expungements demonstrate the state’s commitment to fairness and accessibility.

As Delaware finalizes the next steps, residents can expect a clearer picture of where and how they will be able to purchase cannabis legally. Stay tuned for more updates as the First State moves closer to its first legal sales.