Opportunities in the Illinois Cannabis Market

Opportunities in the Illinois Cannabis Market

Illinois cannabis sales have skyrocketed and continue to rise since the start of recreational sales in 2020. Cannabis business licenses in the initial application round were limited and the process experienced technical errors, as well as delays due to the pandemic. The state continues to refine its legislation in an effort to create a fair application process and has even committed to issuing additional dispensary licenses in the future.

Current Status

As of January 1, 2020, adult-use cannabis sales have been legalized in Illinois. Illinois is the 11th state to legalize cannabis and the 2nd state to have done so legislatively, whereas most states have legalized through voter initiatives. The current law allows for adult-use cannabis for adults 21 and older. Adult-use and medical-use cannabis can be purchased at any licensed dispensary, as well as the allowance of patients registered in the medical-use program to grow their own cannabis. Additionally, a bill was proposed this year that would allow for the delivery of cannabis and cannabis products, though it has not yet been passed.

HB 1443 was recently passed and guarantees the distribution of more than 100 retail cannabis dispensary licenses. This bill will award 55 additional licenses and will only be open to applicants who did not win but scored 85% or higher in the initial licensing process. The state also recently awarded 55 new dispensary licenses through a Social Equity Justice Involved Applicant Lottery.

Cannabis Businesses

With a limited number of licenses available, it has been competitive to obtain a license in Illinois. Over 900 applications were submitted for the 75 dispensing organization licenses initially permitted by the state. Of those applications received, only 21 companies received the perfect score required to receive a license. Since this time, applicants have been allowed to submit a supplemental response for rescoring.

In addition to dispensing organizations, Illinois also permits the following licenses: craft growers; cultivation centers; processors; and transportation organizations. The state also allows for hemp and CBD businesses, production, and sales.

Cannabis News

Cannabis sales in Illinois have been trending upward and are expected to hit $1 billion by the end of the year. A contributing factor to the high sales could be “cannabis tourism” from the states neighboring Illinois that have not yet legalized the use of cannabis. As of right now, sales are increasing rapidly, but there is concern that this could change if surrounding states choose to legalize the use of cannabis or if taxes increase.

Despite concern for the future of the market, it is clear that the Illinois cannabis industry is thriving. With soaring sales and an initiative to increase the number of cannabis businesses in the state, the expanding Illinois cannabis market is still full of opportunity.

How Can Sapphire Risk Help?

Tony Gallo and the team at Sapphire Risk Advisory Group have over 30 years of security experience and expertise. Sapphire has worked in 34 states, including Illinois, and has aided in submitting over 400 cannabis business applications. Follow us on social media to stay up to date with Illinois cannabis industry updates!