5 Things to Know About Ohio’s Adult-Use Cannabis Market

On November 7th, 2023, Ohio voters approved Issue 2, an initiative to legalize recreational cannabis and establish a legal retail marijuana market in the Buckeye State.

But what will legalization look like in Ohio, and what could it mean for the wider cannabis industry? Last week, Rootwurks held a webinar to explore those questions featuring Brian Vicente, founding partner and executive board member of the cannabis law firm Vicente LLP, and Travis Copenhaver, a partner in the law firm who specializes in Ohio.

Here’s a quick look at some takeaways from the webinar. 

It’s huge for the cause of legalization

The saying “as Ohio goes, so goes the nation” may be overstated at times, but it is a bellwether state on many social and political issues. 

“I believe when the history books are written about legalization there will be a solid paragraph about Ohio coming on board as the 24th state,” Vicente said, adding “for a red state surrounded almost entirely by prohibition states to pass adult-use legalization by 57% in a tough election cycle, I think it speaks to where America is at, not just Ohio.”

It’s unclear when sales will actually start

In April, State Rep. Jamie Callender (R-Concord), the chairperson of Ohio’s Joint Committee on Agency Rule Review, said that the state could see legal recreational cannabis sales “certainly before July 4th weekend.”

Clearly, that didn’t happen. But according to Travis Copenhaver, there is “some movement that might indicate” that some legal cannabis sales could start before September.

“Before we can actually have adult-use sales, we need certificates of operation to be issued to testing labs and then some of the first stores. But once that occurs and there’s product to be sold, sales can effectively begin,” Copenhaver said. 

Ohio will probably be a more business-friendly state

In an effort to safeguard consumers - and bring in tax revenue - many states have adopted legal cannabis policies that are tougher on businesses. 

According to Vicente, Ohio’s medical cannabis businesses have so done well for the most part and there has been “fairly decent statewide access to cannabis.”

He added that he thinks that even though some of the firm’s clients are frustrated by how the state is working with cannabis businesses, for the most part, Ohio, a “cherry red” state, should be very business-friendly. 

Real estate is a big issue

Like in any legal cannabis state securing a storefront location is key for retail operations in Ohio - and not always a simple matter. And even with legalization, not every Ohio municipality will allow adult-use dispensaries. Last week, the Dayton Daily News reported that 68 towns in Ohio will ban recreational marijuana sales.

For the pre-existing medical cannabis dispensaries the issue is simplified by the fact that they already have a relationship with local municipalities, giving them a head start. For new license holders though, finding places to operate could prove more difficult. 

Copenhaver said that there is some ambiguity regarding where retail cannabis stores can operate which has created some real challenges, though he also clarified that moving forward more opportunities and locations will open up for retail cannabis locations.  

“For most people in Ohio, even if your immediate local vicinity is not allowing these licenses, hopefully as these stores continue to roll out and more of them get open over the next few months, there will at least be something close by to you,” Copenhaver said. 

They won’t have pre-rolls (at first)

Once Ohio’s legal adult-use cannabis dispensaries open, consumers will find one thing missing: pre-rolls. 

According to Copenhaver, the state is rolling out the law as quickly as it can and doing so by falling back on the existing regulations, which don’t allow pre-rolls. 

“Early on you’re going to see this time period where they’re not going to have the ready-to-be-smoked products, but once the adult-use regulations catch up in September, the statue does allow those forms of products so you’ll see them eventually.”

To hear more about what to expect from the retail cannabis industry in Ohio, stream the webinar on-demand here: