149 Illinois Cannabis Dispensary Licenses Handed Out by State Regulators

Illinois cannabis dispensary licenses are set to more than double with the announcement of new licenses from state industry regulators. The new conditional adult use dispensing organization licenses are the first to be released since the state legalized cannabis in 2019.

The legal cannabis industry in the Illinois has seen little growth compared to neighboring states due to a slew of law suits and constant criticism. While regulators claimed to design the system to promote diversity and inclusion in the industry, it has seemed to do anything but.

Corporate, multi-state operators have already taken over the majority of cannabis business in Illinois, which currently has only 110 dispensaries in operation. For comparison, Colorado has over 1,000 medical and recreational dispensaries across the state.

Additionally, the first companies to receive recreational dispensary licenses had all been previously licenses by the state as medical cannabis dispensaries. For these reasons, the additional 149 Illinois cannabis dispensary licenses are being referred to as “social equity licenses”.

The first wave of licenses released last week went primarily to black-owned businesses (41%), with 7% white-owned, 4% latino-owned and 38% to owners that didn’t specify race. Illinois Governor J.B. Pritzker hopes that the next several waves of licenses will help make the state a model for addressing the War on Drugs.

“Illinois is leading the way in addressing the War on Drugs as no state has before, and dispensary ownership that reflects our state's diversity is a product of that commitment," Pritzker said in a statement. "These licenses represent a significant step toward accountability for the decades of injustice preceding cannabis legalization. Illinois will continue to deliver on the promises of putting equity at the forefront of this process."

However people of color and other minorities weren’t the only ones whom benefited from the new licenses. A major firm with deep ties to the state government scored a license, as well as a chief executive of a large video gambling company in the state.

Of the 149 licenses that were given out last Friday, about 100 are earmarked for the Chicago area.