February 2025 Newsletter

Of the 6,199 new cannabis licenses issued in 2024, the majority were awarded in the Midwest. This growth was largely driven by states like Ohio, which granted hundreds of adult-use licenses to existing operators following its 2023 legalization, and Michigan, where municipalities have been issuing licenses since 2018 without a state-imposed cap or application window. The Midwest's leading role in cannabis licensing is expected to continue this year, with Minnesota set to issue up to 324 licenses by June 2025.

Oregon Ballot Measure Proposes Legalization of Cannabis Cafes

• A newly proposed ballot measure in Oregon aims to legalize cannabis cafes—licensed venues where patrons can consume marijuana on-site while enjoying food and beverages.
• This initiative seeks to expand consumption options beyond private residences, addressing a gap in the state's cannabis regulations since adult-use legalization in 2014.

Illinois Cannabis Sales Surpass $2 Billion in 2024

• Illinois's legal cannabis industry reached a significant milestone in 2024, with sales exceeding $2 billion.
• The industry generated over $490 million in tax revenue for the state.
• Governor JB Pritzker attributed this success to policies focused on equity and repairing past damages, highlighting the creation of 134 social equity dispensaries among the 244 statewide.

Massachusetts Cannabis Regulators Approve New Industry Rules

• On February 21, 2025, the Massachusetts Cannabis Control Commission unanimously approved a new set of regulations aimed at expanding the state's cannabis industry.
• Key changes include extending delivery hours, enabling microbusinesses to expand into new license types, and allowing medical marijuana patients to obtain recommendations via telehealth.
• The updated regulations are set to take effect by November 22, 2025, and are expected to foster growth and inclusivity within the market.