Kentucky Medical Cannabis Program Sees Over 4,000 Dispensary Applications Ahead of October Lottery
According to Governor Andy Beshear, the Kentucky Office of Medical Cannabis received nearly 5,000 applications for the state's medical marijuana dispensary lottery before the portal closed. This marks a significant milestone for the commonwealth’s medical cannabis program, which is gearing up for its official launch in January 2025.
In a press conference, Governor Beshear confirmed that a total of 4,998 applications for medical cannabis business licenses were submitted before the deadline, surpassing expectations. Most applications poured in during the final two days, signaling high interest from potential business owners.
Of the total applications, 4,076 were for dispensary licenses, with 630 coming from the seven-county region that includes Louisville. The remaining applications consisted of 333 processor applications and five safety compliance facility applications. Cultivation licenses were divided into tiers based on indoor growth area:
Tier I (up to 2,500 square feet): 239 applications
Tier II (up to 10,000 square feet): 190 applications
Tier III (up to 25,000 square feet): 155 applications
This surge in applications represents a significant increase from earlier reports. Just last Friday, the Office of Medical Cannabis had only recorded 2,650 total applicants across all license types.
Governor Beshear assured the public that safeguards are in place to prevent "application stacking" — where companies submit multiple applications under different names to increase their chances of being selected. To manage the influx, the state is nearly doubling its staff to review applications thoroughly.
The dispensary applications alone, each with a $5,000 nonrefundable fee, have already generated close to $8 million in revenue for the state, and the final totals are yet to be confirmed.
Starting in January 2025, a total of 48 dispensaries will open across Kentucky, with Jefferson and Fayette counties each set to receive two. Most other counties will be allowed one dispensary. The number of cultivation licenses approved will be clarified in the lead-up to 2025.
Governor Beshear and Kentucky Medical Cannabis Program Executive Director Sam Flynn emphasized that the licenses will be awarded through a lottery system on October 1, 2024. This system is designed to ensure a fair and transparent process, minimizing the risk of conflicts and legal challenges, which have slowed cannabis programs in other states.
“We want to ensure this process is as fair as possible,” said Flynn. “The lottery is the best way to give everyone an equal opportunity.”
Legal challenges surrounding cannabis licensing in other states, like Arkansas and Missouri, have often favored large companies with the resources to fight extended court battles. By using a lottery system, Kentucky hopes to avoid these issues and meet its January 2025 launch deadline without delay.
Several states, including Arizona, Connecticut, and Rhode Island, have successfully used lotteries to allocate cannabis business licenses, ensuring a balanced process for all applicants.
As Kentucky prepares to roll out its medical cannabis program, the high volume of interest indicates that the state is ready to embrace the new market while focusing on transparency and fairness.
