At trade shows, members of the Cannabiz Media group are frequently tested with challenging to answer queries from men and women who want to obtain facts on cannabis business experts, licenses, and corporations from all the information that we track. We normally have the answers they’re seeking for, and we understand a lot about what the industry values in these conversations.
For the final six months or so, we’ve been flipping the query more than and asking men and women which state has the most dispensaries and other license kinds. The answer we practically invariably hear is California or Colorado.
But that is not appropriate. 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 offered the population variations.
The numbers above are drawn from the Cannabiz Media License Database and involve only active licenses. This is an critical distinction as California has had numerous of their short-term licenses expire all through 2019.
What is even extra astonishing is that California’s population is ten occasions the size of Oklahoma’s! This translates into a single dispensary for every single two,356 men and women in Oklahoma versus a single for every single 67,972 men and women 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 quick to acquire cannabis. Having said that, when adult use was authorized, the state had the extremely difficult process of attempting to harness this massive marketplace.
The scheme regulators came up with had more than 100 distinctive license kinds with distinct designations for short-term, provisional, and annual variations. Covered activities incorporated the regular 4 of testing, cultivation, manufacturing, and dispensing along with delivery, distribution, and microbusiness licenses.
Oklahoma has a a great deal shorter history in terms of cannabis regulation. The state began to situation the very first state licenses in August 2018, 10 months following California. Oklahoma only issued them for cultivation, manufacturing, and dispensing.
Additionally, the complexity of the licenses was much less than what was needed in California, and the charge was only $two,500. The chart beneath illustrates the variations among the two states displaying Oklahoma charges versus the highest attainable charge in California.
Also, the Oklahoma Healthcare Marijuana Act explicitly restricts cities from taking action in relation to the implementation and regulation of activities connected to healthcare marijuana in the state. This is pretty distinctive than in California exactly where complete counties have opted out of possessing licensed organizations inside their borders
So What Does it Imply?
We doubt there are numerous organizations that are deciding whether or not to enter the cannabis business in California or Oklahoma, but the evaluation above does highlight the patchwork of guidelines and regulations that can generate anomalies like Oklahoma possessing extra licenses than California.
Quite a few of these Oklahoma organizations will possibly 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 just before as well extended.
In addition to the variations in the licensing program’s charges and complexities, there are also vast variations in populations. California’s 34 million men and women is roughly ten occasions the quantity of men and women 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 building regulatory structures to help the plan that involve requiring specific license holders register with other regulators like the Workplace of Narcotics & Risky Drugs Manage and the Division of Well being
Sector consultant Avis Bulbulyan lately commented on the net about the wholesome quantity of applications received in the state of Missouri for its upcoming plan. He believed the groundswell was in line with other states that get, “7-10 occasions the quantity of applications compared to licenses accessible.”
Even though 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 believe 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 support our shoppers 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 and marketing tools can support you attain your organization 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 facts corporations in the compliance space. Ed has overseen complicated multijurisdictional solution lines in the securities, corporate, UCC, security, environmental and human resource markets and focuses on workflow merchandise. Ed has spent the final twenty 5 years in the facts business. Throughout that time he has worked for each startup and established facts corporations exactly where he has led advertising and marketing, solution management and sales organizations. These corporations involve Wolters Kluwer/Commerce Clearing Property, CT Corporation, EDGAR On the net and Company & Legal Reports. At Cannabiz Media Ed enjoys the challenge of operating with regulators across the nation as he and his group collect corporate, monetary, and license facts to track the men and women, merchandise and organizations 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 Sector 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 Small League Coach for seven years.