Delaware to launch recreational cannabis sales on Aug. 1

Delaware will launch recreational cannabis sales on Aug. 1, state officials announced Tuesday, making the state the 22nd market with regulated adult use.

The first retail opportunities are reserved for the state’s 13 medical marijuana businesses, all of which are required to pay a conversion fee under legislation passed last year.

In a statement, Gov. Matt Meyer highlighted the potential tax windfall as well as the benefit for marijuana social equity entrepreneurs.

“I’m proud we’re moving quickly and thoughtfully to build a cannabis market that reflects our values and expands opportunity for every Delawarean,” Meyer said in his statement, in part.

Sales could reach as much as $160 million by the end of 2026, according to an MJBiz Factbook projection.

Sales will be subject to a 15% excise tax.

Conversion fees in Delaware range from $200,000 for cultivation licenses and $100,000 for retailers, state officials said.

That money created a $4 million fund available for social equity applicants to pay for startup costs.

Delaware could be the first of several states to launch adult-use sales in 2025.

Sales are expected to begin in Minnesota sometime this year, but no hard launch date has been set.

And Virginia is on the cusp of beginning sales, though a launch has been stalled amid several years of Republican-led obstructionism.

Delaware’s Aug. 1 launch date is the result of several delays after former Gov. Jay Carney allowed an adult-use bill to become law in April 2023.

After finalizing regulations last fall, the state selected 125 license winners during lotteries last October and December.

More than 1,200 applicants entered the lotteries.