Rhode Island is moving forward with plans to allocate 24 new cannabis retail licenses through a hybrid process that combines a merit-based screening and a lottery system.
(Photo credit: Vicente LLP).
The state’s Cannabis Control Commission unanimously approved the approach on Friday, which seeks to balance fairness with efficiency as Rhode Island’s recreational cannabis market continues to develop.
Under the proposed system, applicants will first undergo a screening to evaluate their qualifications, including their readiness for licensure and ability to operate a retail outlet. Those who pass this initial phase will then enter a lottery, but only in regions where demand for licenses exceeds supply. Rhode Island’s cannabis laws divide the state into six geographic zones, with a maximum of four stores permitted in each. Two of the four licenses in each zone will be reserved for social equity applicants and worker cooperatives.
This new hybrid approach aims to avoid some of the pitfalls experienced in states like Illinois and New York, where strictly merit-based systems have led to delays and legal challenges. By incorporating a lottery, the Rhode Island Cannabis Control Commission hopes to prevent issues related to favoritism and ensure a more streamlined process.
The commission is still finalizing regulations, including specific criteria for the initial screening phase. Once complete, the state will finally be able to award the pending retail licenses, bringing a much-anticipated expansion to Rhode Island’s cannabis market.
