Delaware’s recreational marijuana market is “advancing in accordance with legislative mandates, following essential updates and a rigorous licensing process”, according to a press release.
In 2023, Delaware enacted legislation legalizing an adult-use recreational marijuana market and outlining a structured system for cultivators, manufacturers, retailers, and testing laboratories, with a strong emphasis on social equity applicants.
The law created the Office of the Marijuana Commissioner (OMC) to oversee the program and develop an extensive regulatory framework. Proposed regulations were issued in May 2024, and finalized in September 2024 after two rounds of public commentary. These regulations outline the licensing and operational requirements and are published under the 5001 Rules of the Office of the Marijuana Commissioner.
The General Assembly enacted additional measures in 2024. In July 2024, House Bill 334 expanded program requirements and House Bill 408 established a pathway for existing medical marijuana establishments to transition into the adult-use market. These entities were permitted to apply for a conversion license at substantial cost—$200,000 for cultivation and $100,000 for manufacturing or retail—generating $4 million in critical funding for social equity applicant start-up grants. These conversion licenses are not yet active. Social equity grant applications will be accessible in March 2025, with detailed application procedures mailed directly to eligible applicants.
The OMC has also worked closely with state agencies to ensure a seamless implementation in Delaware. Collaborating with the Department of Technology and Information (DTI), an online application platform was developed. Concurrently, the Office of Management and Budget (OMB) procured a seed-to-sale tracking system, and the Division of Revenue (DOR) established a Retail Sales Tax framework. These efforts ensure transparency, regulatory compliance, and the orderly administration of the licensing process.
According to the OMC, officials have also actively engaged with communities statewide, participating in meetings in Fenwick Island, Seaford, Lewes, Milford, Dover, Georgetown, Newark, Wyoming, Camden, and multiple county and municipal councils to advocate for local support of the legal market. Additionally, OMC has engaged with the Central Delaware Chamber of Commerce, Lewes Chamber of Commerce, Delaware Black Chamber of Commerce, and the Delaware League of Local Governments to provide resources and outreach to those opening their business within the industry.
To further promote equity and compliance, OMC has conducted four social equity workshops—one in each county and one in Wilmington—alongside four Division of Revenue tax workshops in New Castle, Kent, and Sussex counties.
A total of 1,271 applications were received for 125 licenses available across 11 categories. Following an initial review for minimum standards, 1,256 applications proceeded to the lottery phase. The first lottery was conducted on October 24, 2024, with a subsequent lottery held on December 19, 2024, due to overwhelming demand for retail licenses (529 applications for just 15 retail permits).
Selected applicants were required to submit extensive documentation for a comprehensive financial and background investigation, including:
- Income tax transcripts;
- Authorization for the release of financial and background information from all financial institutions;
- Disclosure of long-term debt obligations;
- Details of financial institution relationships over the past 10 years;
- Disclosure of any bankruptcy or insolvency proceedings within the past 10 years;
- Business history, including current and former operations over the past 10 years;
- Civil litigation history, including all settled or closed legal actions within the past three years;
- Any history of license denials, suspensions, or revocations in Delaware or other jurisdictions within the past 10 years.
After the final lottery, selected applicants had until February 10, 2025, to submit all required documentation and attestations to complete the mandatory background check.
Of the selected applicants, 44 licenses are awarded to women. Based on self-reported data, the racial/ethnic breakdown of license recipients is as follows: 19 to Asians, 35 to Black or African Americans, 6 to Hispanics, and 7 listed their race as “other.”
The newly established Marijuana Enforcement Unit within the Division of Alcohol and Tobacco Enforcement (DATE) is currently conducting background investigations on applicants meeting all requirements. These investigations include detailed financial, tax, civil, and criminal background reviews for any individual holding a 10% or greater ownership stake in a marijuana establishment. In accordance with Delaware law, all licensees must undergo fingerprinting for both state and federal background checks. The OMC’s application for fingerprinting authorization is pending final approval from the Federal Bureau of Investigation.
Upon successful completion of the background review, selected applicants will be issued conditional licenses and granted an 18-month period to become fully operational.
OMC’s first Commissioner, Robert Coupe, provided extensive updates about the licensing process at every opportunity, including during Delaware Marijuana Control Act Oversight Committee meetings. Commission meetings and links to the minutes are available on the public meeting calendar.
The OMC remains committed to implementing a well-regulated, compliant, and equitable adult-use marijuana market in Delaware. Further updates will be provided as the market launch progresses.
