How to Launch A Business In Delaware’s Cannabis Market
From Lottery To Licensure In The First State
Delaware’s adult-use cannabis market is finally taking shape and if you were one of the 1,271 business hopefuls who threw your hat in the ring, you know just how competitive this process has been.
Out of 125 total cannabis licenses available across 11 categories, 1,256 applications advanced past the initial review to reach the lottery stage. The first lottery round took place on October 24, 2024, followed by a second drawing on December 19 to accommodate the surge in retail license interest. But winning the cannabis license lottery was just the beginning—now comes the hard part.
The Next Phase of Cannabis Business Development: Due Diligence and Documentation
After selection, cannabis license applicants faced a deep dive into financials and backgrounds. With Delaware’s Office of the Marijuana Commissioner (OMC) overseeing the process, selected businesses are now advancing through a rigorous supplemental application phase before receiving conditional licenses.
Business owners have eighteen (18) months to convert from a conditional license to a fully operational cannabis business—no small feat. If you’re in this phase, expect to compile everything from zoning approvals and finalized business plans to highly detailed Standard Operating Procedures (SOPs) covering everything from adverse event reporting to secure transport.
Sample Requirements For License Conversions
Here’s just a slice of what’s required to convert conditional licenses to full:
- Regulatory Compliance Plan
- Site Plans, Control, and Zoning Approval
- Finalized Security Plan, Business Plan, Financial Strategy, and Operational Plan
- SOPs for Adverse Event Reporting, Quality Assurance/Control, Recall, Inventory Control, Storage, Diversion Prevention, Waste Disposal, Sanitation, Accounting and Tax Compliance, Age Verification, and Secure Transport
- Certifications for Social Equity, Minority, Women, or Disabled Veteran-Owned Businesses (if applicable)
Requirements Based On Business Type
Additionally, if you’re pursuing a cultivation, manufacturing, retail, or testing license, the document demands go even deeper, including SOPs for packaging and labeling and license-specific operational methodology and processes.
Delaware’s Existing Market Hurdles
Delaware’s cannabis program rollout hit a snag earlier this year when a dispute with the FBI delayed background checks. The federal agency initially rejected the state’s request for fingerprint-based investigations, stating that it “didn’t qualify pursuant to federal law.”
In response, Governor Matt Meyer signed HB 110 into law, amending the state’s marijuana regulations to clearly define who is subject to fingerprint-based checks—bringing Delaware’s policies in line with federal requirements and ideally allowing the licensing process to move forward swiftly.
Adding to the turbulence, Delaware’s Marijuana Commissioner, Rob Coupe, stepped down in January. While transitions in leadership can often create uncertainty, the OMC has continued to advance the fingerprinting process. In late April, Gov. Matt Meyer nominated a new marijuana commissioner, lawyer and regulatory expert Joshua Sanderlin.
What Comes Next For Delaware Cannabis Licensees
Once background checks are cleared and all supplemental documents are submitted, conditional licensees in Delaware’s adult-use cannabis program can begin building out their operations. That 18-month runway will go fast—especially when you’re juggling facility design, compliance audits, hiring, and SOP implementation—and making smart moves early is essential to opening a compliant and successful cannabis business.
Top Priorities For Delaware Cannabis Hopefuls
In a position to convert your conditional Delaware cannabis license? Here’s what to prioritize now:
1) Secure Site Control and Zoning Approval
Whether you are leasing or purchasing, documented site control is a non-negotiable step in the Delaware cannabis licensing process and finding a friendly local government can be a challenge. Confirm that your facility meets all zoning requirements for cannabis use in the jurisdiction.
2) Draf Compliant Cannabis SOPs
Standard Operating Procedures (SOPs) form the backbone of every successful cannabis business. Start with key compliance SOPs for inventory management, diversion prevention, waste disposal, and sanitation. Tailor your documents to your license type—cultivation, manufacturing, retail, or testing—to meet Delaware’s regulatory requirements.
3) Finalize Ownership and Entity Structure
Ensure all business owners and financial stakeholders are fully disclosed and vetted. This is crucial for maintaining transparency and staying in good standing with the Delaware Office of the Marijuana Commissioner (OMC).
4) Recruit and Build Your Cannabis Team
Hiring early allows time for onboarding, training, and ensuring team alignment with your operational and compliance strategy. When assembling your staff, focus first on hiring for security, compliance, and facility development roles.
5) Engage with Local Officials and Inspectors
Don’t overlook local approvals. Coordinate early and proactively with city or county officials to make sure your buildout plans align with fire safety, public health, and other local cannabis regulations.
Delaware Applicants Need a Proven Business Consultant
The bottom line: Lottery winners won’t succeed on luck alone. Getting from conditional license to grand opening requires discipline, capital, and a detailed understanding of cannabis compliance and operations. This phase separates conditional license holders from fully operational cannabis businesses.
Whether you’re developing your first SOP or selecting your buildout partners, it’s a critical time to bring in advisors, counsel, or consultants with cannabis-specific experience to help avoid costly delays and missteps. A strategic consulting partner like Canna Advisors can help you navigate every milestone—on time and in full compliance.
Contact us today or book an hourly consulting spot to get you Delaware business ready for launch.