Delaware Cannabis Opportunities for NJ and PA Residents
Tri-State Cannabis: Why Delaware May Provide Better Options
Delaware is known as a business-friendly state and has aptly rolled out a very thoughtful cannabis business license application process. Other than their proliferate use of the now out-of-fashion term “marijuana,” Delaware has put together a fairly progressive program with low barriers to entry and both social equity and small business aspects. Delaware’s strategy of awarding social equity, microbusiness, and open licenses in the initial qualified application period looks to create a diverse and sustainable cannabis market.
1) Missed the Cannabis Business Boat in New Jersey
While New Jersey residents may not have completely missed the boat when it comes to cannabis business licensing, since New Jersey has a rolling application process and local jurisdictions could continue to allow additional facilities, but it’s competitive as heck out there for New Jersey’s prospective cannabis licensees.
In an industry that fights tooth and nail already for prime real estate, a densely populated area like New Jersey, with additional municipal barriers to entry, makes it an uphill battle even for those who started their application process years ago. New Jersey residents with the motivation to start a cannabis business can look to neighboring Delaware and Rhode Island for new opportunities.
2) Pennsylvania Residents: Tired of Waiting on Legalization
Even with consumer support and from the executive level in the state, adult-use cannabis has seemed to be but a dream for Pennsylvania residents. After a recent budget approval excluding cannabis provisions, hope was almost lost until a new bipartisan Pennsylvania cannabis legalization bill was unveiled.
From what we’ve experienced in cannabis program rollouts in dozens of other states, Pennsylvania has a long road ahead until new licenses are available. For now, Pennsylvania entrepreneurs can tentatively prepare their PA business plans and look to nearby states like Delaware and Rhode Island for current adult-use cannabis licensing pathways.
Delaware: Current Cannabis Licensing Opportunities
Delaware cannabis regulators did something unheard of and opened their license application period ahead of schedule—starting Monday, August 19, 2024, and closing on Monday, September 30, 2024! Though the Office of the Marijuana Commissioner (OMC)’s initial announcement on Twitter/X (with no updates on the State webpage for days) was a bit of a letdown, Delaware is obviously ready to get this market rolling and has done a few key things to set itself apart.
1) Property Flexibility
Unlike some states that require a secured location to apply, Delaware allows you to submit your cannabis application without finalized real estate. This approach offers applicants greater flexibility to explore property options without pressure (though you still need to stay within your region).
2) Commitment to Social Equity and Small Business
Delaware places a strong emphasis on inclusivity, reserving 50% of retail licenses for social equity applicants. Another portion of licenses are reserved for Microbusinesses, which are limited to 10 employees and 2,500 square feet. These initiatives are admirably aimed at creating a more diverse and equitable cannabis industry.
3) Vertically Integrated Option
According to Delaware law, vertical cannabis integration is allowed, enabling applicants to hold multiple licenses across cultivation, product manufacturing, and retail (dispensary) marijuana store operations.
4) Ownership Restrictions
However, ownership restrictions are in place to prevent monopolization within a single license type. Delaware offers applicants the chance to submit up to three cannabis license applications for any license type—one in each county—significantly increasing the odds of securing a license in the lottery.
Ready to Take Advantage of Delaware Cannabis? Trust The Experts
Delaware might be the tipping point for cannabis programs in the region and residents of NJ and PA particularly can seize nearby opportunities. As a cannabis regulatory consultant, we closely monitor the evolving landscape of cannabis legalization across the Tri-State area of New Jersey (NJ), Pennsylvania (PA), and Delaware (DE), along with active states along the East Coast and nationwide. Each state has taken its own path toward cannabis reform, and Delaware, the “First State,” is emerging as a leader.
If you’re ready to take the next step in your cannabis licensing journey, contact our team of proven East Coast cannabis consultants or book our hourly consultant spot for quick, one-on-one expertise.