Ohio’s Adult-Use Market Hits One-Month Mark with $44 Million in Sales

Now a month into its adult-use dispensaries being open to the public, the Ohio Division of Cannabis Control (DCC) reported $44,051,671 in gross revenue on August 31st for its first 25 days of adult-use cannabis sales. Ninety-eight dispensaries opened to non-medical customers on August 6th, and now 123 of them are open to adults across the state. 

FINES INCURRED BY LICENSEES

According to a report by News 5 Cleveland, a handful of cannabis licensees were fined recently for improper marketing and advertising during the switchover from MMJ only to adult-use. The Botanist (Acreage Holdings), Standard Farms, Guaranteed Dispensary, Bloom Medicinals, and Green Thumb Industries (Rise) were among the licensees levied $12,500 fines for improper advertising. “All licensees fully understand they are required to adhere to the medical rules for advertising, and violations of this directive are being taken seriously,” Department of Commerce Public Information Officer Jamie Crawford responded. “The Division continues to monitor licensees for compliance with all program rules to ensure a level playing field for all licensees.” Fines levied by the DCC totaled more than $120,000. 

WHAT’S NEW: LIMITS IN 3 MAJOR CITIES

On top of the 123 adult-use dispensaries currently operating, the DCC recently approved 121 additional applications for retailers via the state’s 10(B) application process. These 10(B) licenses can only go to existing licensed growers and certain already-licensed dispensaries. The state added stipulations that 47 of these 10(B) dispensaries cannot be in Franklin, Cuyahoga or Hamilton counties in the vicinity of the cities of Columbus, Cleveland and Cincinnati. The DCC states that these areas already have sufficient retail locations, according to The Columbus Dispatch. 

The 10(B) licenses have a $5,000 application fee. Licensed Level I cultivators were eligible for up to three 10(B) dispensary licenses. Level II cultivators and standalone medical dispensaries were able to obtain one 10(B) license.

WHERE DOES ALL THE MONEY GO?

With all the funds being raked in through tax revenue and licensee fees, the monies collected by the state will be substantial. Thirty-six percent of tax revenue will go to the Host Community Cannabis Fund which benefits municipal corporations or townships that have adult use dispensaries in them. Another 25 percent goes to the Substance Abuse and Addiction Fund. The additional 36 percent will go to the Cannabis Social Equity and Jobs Program. This fund “directs investment in disproportionately impacted communities to enhance education, entrepreneurship, legal aid, youth development, violence prevention, and the arts related to the program.” The Cannabis Social Equity and Jobs Program details have not yet been announced.

MMJ PATIENTS NOTE PRICE SURGES

Ohio medical cannabis patients continue facing significant challenges as the newly implemented adult-use cannabis law reshapes the dispensary experience. As we’ve previously reported on MedicateOH, the increased access introduces a series of concerns for those relying on medical cannabis for their health and well-being.

One of the primary issues that medical cannabis patients in Ohio are encountering is the potential impact on product availability and pricing. As more dispensaries begin to cater to recreational users, medical patients fear that the supply of medical-grade cannabis could diminish, leading to shortages or less variety. This concern is compounded by price increases, driven by higher demand. For patients who depend on specific strains or formulations to manage chronic conditions, these disruptions can be particularly troubling.

Moreover, some patients worry that the quality of products available to them might decline. The shift in focus toward recreational users could incentivize dispensaries to prioritize products with higher THC content, appealing to those seeking a stronger psychoactive effect rather than therapeutic benefits. As a result, medical patients who require lower THC or more balanced cannabinoid profiles might find it harder to access the products they need. 

EROSION OF MMJ BENEFITS?

Another significant concern is the potential erosion of the benefits that come with a medical cannabis card. Ohio’s MMJ card provides patients with certain advantages. However, with the expansion of the adult-use market, there is uncertainty about whether these benefits will remain intact. Some dispensaries have already reduced their benefits to veterans and indigent patients or eliminated “stacked” benefits. Loyal patients who once enjoyed these discounts are now left to scramble and consider competing dispensaries to buy their medicine affordably. 

Additionally, the integration of dual-use licenses could lead to longer wait times, less personalized service, and a general feeling among patients that their needs are being overshadowed by the influx of recreational users.

“LIKE ALCOHOL” = INCREASED STIGMA?

Lastly, there are worries about the potential for increased stigma and confusion surrounding cannabis use. As recreational use becomes more widespread, some patients fear that the medical aspect of cannabis could be overlooked or misunderstood by the general public. This could lead to a lack of awareness about the medical needs of patients, further complicating their access to necessary treatments.

While the legalization of adult-use cannabis in Ohio marks a significant shift in policy, it brings with it concerns for MMJ patients. It remains crucial for regulators and dispensaries to ensure that the needs of patients are not sidelined as the recreational market expands​.

Have a concern to address about the Ohio cannabis program as an industry worker, MMJ patient or adult-use consumer? Send it to us.

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