Cannabis Industry Gets Positive Numbers in Illinois, 149 New Licenses to Add to the Momentum

Illinois' cannabis industry show positive sales and gets boost with 149 new licensees
Illinois' cannabis industry show positive sales and gets boost with 149 new licensees

Image source: Matthew Hatcher / Reuters

On Friday, Illinois regulators issued 149 cannabis dispensary licenses that vowed to increase the number of marijuana stores in the state.

The decision ends a nearly a year delay for entrepreneurs looking to delve into the cannabis industry, giving them the green light to prepare for their storefronts.

The decision to regulate waiver permits was the first decision of Prime Minister JB Pritzker’s government.

History

Marijuana was previously legalized with its signature in 2019. A year later, sales began. The problematic introduction of licensing in Illinois then hit a stumbling block.

A steady stream of lawsuits and criticism that the diversity promotion system paved the way for established marijuana giants with 110 operating dispensaries.

The first companies to open stores were all previously state-licensed medical marijuana dispensaries.

License delays

The 149 new Social Justice licensees are among 185 applicants who won a series of gated lotteries for the coveted license last summer.

However, two candidates sued the state’s filing system, prompting a Cook County judge to order state officials to suspend license distribution.

The judge canceled the arrest warrant in May.

Read also: Joshua Haupt on the Role of Cannabis in His Journey of Health and Entrepreneurial Triumphs

The licensees

On Friday, Pritzker’s office called “first-wave” licensees officially licensed to sell weed.

More than 41% of new graduates are predominantly black, 7% white and 4% Latino.

According to official figures, 38% did not share the race of their owners.

Pritzker’s statement

“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.

“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,” he added.

Read also: The Lifted Elephant Group: An Emerging NFT Community for Cannabis Enthusiasts

Opportunities for minorities

Although the new licenses allow people of color to enter retail, existing industry players and political insiders have also scored points, including GRI Holdings.

GRI Holdings is a powerful company with ties to the state government, which includes restaurateur Phil Stefani and Jeffrey Rehnerger, CEO of video game company Lucky Lincoln Gaming.

Baked Too, a minority startup, also received the government seal of approval.

The company was cleared after filing a lawsuit in Cook County court claiming that the state had “forced” it to unfairly give up a lottery seat

 Along with other new licensees, So Baked partner Britteney Kapri has 180 days to get a company’s approval before they receive a full license for the group to start stockpiling weed.

Kapri said he was still “shocked” to finally get the approval after all these years.

“We are still at the very beginning of a long long process,” said Kapri.

“I feel good, really, really good – and scared but hopeful.”

Industry sales

Meanwhile, cannabis sales in Illinois have skyrocketed, with the state receiving nearly $450 million in tax revenue from $1.5 billion in recreational marijuana sales.

According to Governor JB Pritzker, the amount of taxes collected has increased from $297.7 million in fiscal year 2021 to $445.3 million this year, an increase of 50%.

Overall, recreational cannabis sales also increased by 50%, from $1 billion to $1.5 billion.

“Illinois has done more to put justice and equity at the forefront of this industry than any other state in the nation and has worked to ensure that communities hurt by the war on drugs have had the opportunity to participate,” said Pritzker.

“The $1.5 billion in sales of adult-use cannabis in Illinois translates into significant tax revenue with a portion of every dollar spent being reinvested in communities that have suffered for decades.”

References:

State regulators finally pass new batch of pot dispensary licenses

Illinois saw 50% increase in cannabis sales, with $1.5 billion in past fiscal year


Opinions expressed by The Chicago Journal contributors are their own.

Edward Anderson

A loving father of three and currently runs his business in San Francisco. He graduated with a degree on Business Administration and Master’s Degree in Public Administration. His dedication to marketing and human resource pushes him to be a freelance writer and, motivational speaker and an educator.

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