Under a quarter of D.C. unlicensed cannabis shops transition to the legal market
D.C. is now home to 41 unlicensed cannabis stores that successfully transitioned to the legal medical cannabis market – a little under 50% of unlicensed applicants tracked by the Outlaw over the last year.
Two stores made it to the licensing docket but did not open by Monday, according to the METRC system records reviewed and verified by the Outlaw. Another five stores were still in the the middle of processing and also missed the deadline. Another 28 applications were either denied, revoked or withdrawn within the last 13 months. These stores’ applications and licenses will be rescinded or denied, according to the ABCA guidance.
As of last Wednesday, only 15 unlicensed shops had officially transitioned to the legal market. But they already represented over 60% of the legal medical dispensaries open.
Only four medical dispensaries in D.C. remain from the original round that opened almost a decade ago when D.C. legalized medical cannabis. Another two recently opened stores are legacy licensees who were awarded retail licenses before the 2022 expansion of the program. These licensees now represent less than 11% of the entire medical market.
As of April 1, 2025, 41 unlicensed stores are officially transitioned – a more than 170% increase in unlicensed stores entering the legal medical cannabis market. A handful of social equity applicants and one standard applicant also opened in the last week.
A total of 55 stores were registered on METRC according to the records the Outlaw reviewed. This is an over 50% increase in dispensary market size in less than a month. In other words, practically over night, the D.C. medical dispensary store fronts doubled.
The minority of gifting stores choose to transition fully, previous market estimated put the number of unlicensed store fronts at over 200. Only about 20% of unlicensed stores transitioned out of the gifting market in D.C. since ABCA offered unlicensed gifting operators a window to apply to be legal medical cannabis dispensaries in 2023.
- ABC Board Meeting April 2 at 10:30 A.M., watch, agenda.
- Another placarded D.C. cannabis shop, padlocked for unlicensed sales
- Trump’s D.C. task force targets “failed Policies,” including cannabis decriminalization
Maryland Senate Passes Cannabis-Firearm Possession Bill
Maryland Senate advances a bill to relax cannabis laws, allowing adults over 21 to manufacture cannabis products for personal use or adult sharing at a private residence.
- Ocean City dispensary proposal draws community interest.
VA Republican Gov. vetoes retail cannabis bill, again
Virginian Gov. Glenn Youngkin vetoed House Bill 2485, which aimed to establish a retail cannabis market in Virginia, citing adverse effects on children’s health and safety, failures of legalized retail markets in other states, increased violent crime, psychiatric disorders and decline in road safety.
ICYMI: Third shut down of same unlicensed D.C. cannabis shop raises questions of enforcement effectiveness, plus medical market sees patient growth but sales stay flatt three months and plateauing revenue for dispensaries despite an increase in open businesses.
- ABC Board Meeting Mar. 26 at 10:30 A.M., watch, agenda.
- Unlicensed Adams Morgan cannabis store shut down a third time
- Read the Medical Cannabis Notice of Seventh Emergency Rulemaking
Virginia’s cannabis market generates modest revenue
Virginia’s legal cannabis retail market brought in about $6 million in 2024, significantly lower than neighboring Maryland’s revenue. Officials cite the state’s limited access and lack of licensed dispensaries as barriers to broader market growth.
Maryland cannabis lab agrees to restrictions after conflict of interest concerns
Quales, LLC, an independent cannabis testing laboratory in Frederick, Maryland, has entered into a consent order with the Maryland Cannabis Administration (MCA) following an investigation that revealed potential conflicts of interest with a nearby cannabis processing facility, Ceres Naturals LLC.
Maryland cannabis grower fined $17,500 for theft and reporting violations
PharmCann, Inc., operating as PC Cultivator LLC, a licensed cannabis grower in Lothian, Maryland, has agreed to pay a $17,500 fine to the Maryland Cannabis Administration (MCA) for violations related to employee theft and reporting procedures, according to documents.
- Maryland earns $72 million in 2024 cannabis tax revenue
- Student charged after cannabis found in backpack at Maryland high school
East Coast Roundup
New York’s cannabis market is facing cost increases due to unexpected tariffs on imported agricultural products and supplies used by the legal cannabis industry. Guarino said the tariffs hurt businesses that play by the rules, extending the advantage that the illicit market already has.
Governor Hochul has signed a bill allowing “cannabis showcase” events in New York, enabling licensed cultivators and processors to directly market and sell products at temporary retail venues. The law aims to support small cannabis businesses and improve consumer access.
NYC officials secured a legal win in a lawsuit brought by 27 unlicensed cannabis retailers whose shops were padlocked and inventory seized in May 2024. The retailers alleged the enforcement action violated their 14th Amendment due process rights, but the court sided with the city, reinforcing its authority to target illicit operators.
- New York may allow cannabis in movie theaters:
A new investigation highlights lax oversight of Pennsylvania doctors who certify patients for medical cannabis. Some physicians approved thousands of patients in short timeframes, raising concerns about potential abuse.
- Pennsylvania may tighten medical cannabis recommendation rules
Hemp growers in Connecticut are urging lawmakers to grant them full access to the adult-use cannabis market. Advocates say current regulations exclude experienced farmers and hinder equitable industry growth.
Culture & More
A year after Germany passed its recreational cannabis reform bill, industry leaders say the rollout has been slow but promising. Legalization has spurred new business interest and dialogue around regulation, though supply chain challenges and federal guidance remain ongoing concerns.
Longtime cannabis advocate Seth Rogen says he avoids smoking cannabis on airplanes, citing basic etiquette and respect for others—even in legal states.
A recent study found that a cannabis extract containing both THC and CBD may significantly reduce neuroinflammation and improve motor function following spinal cord injury.
Around the Country
Retailers in Ohio are pushing back against a proposal to limit the sale of hemp-derived products like CBD and delta-8 THC to licensed cannabis dispensaries, arguing it would hurt small businesses and reduce consumer access.
The New Hampshire House passed another cannabis legalization proposal, which now moves to the Senate. The bill reflects continued momentum for reform in a state surrounded by legal cannabis markets.
State senators are pushing for reforms to Hawaii’s medical cannabis system, including expanded qualifying conditions, reduced patient costs, and streamlined dispensary regulations.
From the swamp
Despite the FDA advancing cannabis-based drug development, the DEA’s delay in rescheduling cannabis is undermining U.S. competitiveness in the global cannabis pharmaceutical market. Industry advocates warn that continued federal inaction could allow international rivals to take the lead in research and innovation.
Opinion: Matt Gaetz, former Republican representative, supports reclassifying cannabis as a Schedule III substance, pointing to medical evidence and widespread public backing. He also says “meaningful” cannabis reform is “on the horizon,” commending the president’s “leadership” on the rescheduling effort.
Opinion: Pennsylvania Rep. Abby Major urged fellow Republicans to back adult-use cannabis legalization. She emphasizes states’ rights, criminal justice reform, and revenue generation as core conservative values aligned with cannabis policy reform.
