Rhode Island to Award 24 Cannabis Licenses Through Merit-Lottery Combo

6 September 2024

Rhode Island is moving forward with plans to expand its recreational cannabis market through a newly approved hybrid licensing process for 24 cannabis retail outlets. The system, designed by the Rhode Island Cannabis Control Commission, blends merit-based screening with a lottery to ensure fairness in awarding licenses. Under the Rhode Island Cannabis Act, licenses will be distributed across six geographic zones, with two in each reserved for social equity applicants and worker cooperatives. This approach addresses issues like delays and favoritism seen in other states and aims to streamline the market's growth while adhering to the state’s social equity requirements.

As regulators finalize the rules under the Cannabis Control Commission’s guidelines, the hybrid system could accelerate the development of recreational cannabis dispensaries, benefiting both consumers and medical marijuana patients by improving accessibility and fostering competition. However, concerns persist about high entry fees—up to $125,000 as stipulated by the Rhode Island Cannabis Act—and the need for clearer criteria to define social equity applicants. Critics argue that the current standards may unintentionally favor wealthier individuals, potentially undermining the intent to support marginalized communities.