New York State Approves 74 More Adult-Use Cannabis Licenses as Regulators Push Forward With Application Processing

New York’s cannabis industry took another step forward as regulators approved 74 additional licenses for adult-use cannabis businesses. This marks a significant milestone in the state’s effort to expand legal marijuana operations, despite previous legal challenges and delays.

On Friday, the state’s Office of Cannabis Management (OCM) also provided an encouraging update for applicants who submitted their paperwork in November 2023. Officials reported that only “about 150 applications” from that period remain under review, signaling that the state is moving steadily through its backlog.

Breakdown of the Newly Approved Recreational Marijuana Licenses in New York State

The 74 new licenses issued by the Cannabis Control Board are spread across several categories, reflecting the state’s commitment to building a diverse and well-regulated market. The distribution of these licenses includes:

6 licenses for cannabis distributors

10 licenses for microbusinesses

39 licenses for processors

16 licenses for retailers

3 additional Conditional Adult-Use Retail Dispensary (CAURD) licenses

With these new additions, New York State now boasts a total of 1,510 licensed cannabis businesses. However, not all of them are currently operational, as some are still navigating the challenges of securing locations, completing regulatory requirements, and establishing supply chains.

Number of Open Cannabis Stores in New York Reaches 307 as Industry Slowly Expands

Despite the growing number of licensed cannabis businesses, not all have successfully launched operations. As of Monday, the OCM reported that 307 legal cannabis dispensaries are open and actively selling products across the state.

This figure represents progress but also highlights the obstacles many businesses face in getting their doors open. High real estate costs, complex regulations, and competition with unlicensed operators have slowed the rollout of legal cannabis stores.

The Impact of Legal Challenges and Lawsuits on the Cannabis Licensing Process in New York

New York’s adult-use cannabis licensing program has been plagued by legal battles, particularly surrounding the CAURD program, which was designed to prioritize individuals affected by past marijuana-related convictions.

Lawsuits challenging the fairness of this program led to an almost yearlong delay in issuing licenses statewide. The prolonged legal uncertainty frustrated many applicants and investors who had hoped for a faster regulatory process.

After the two major lawsuits were settled in 2023, state regulators resumed issuing licenses, allowing them to finally process applications for various types of cannabis businesses.

The November and December 2023 Cannabis Licensing Queues: Where the Process Stands Now

When the lawsuits were resolved, the OCM opened two licensing windows—one in November 2023 and another in December 2023—allowing businesses to apply across multiple license categories.

Last summer, OCM’s acting executive director, Felicia Reid, projected that it would take until early 2025 to complete the review of all 2023 applications.

Although this timeline initially seemed long, it has proven to be accurate. As of Friday, February 16, 2024, officials confirmed that:

Only 150 applications from the November queue remain to be reviewed.

Thousands more applications from the December queue still need to be processed.

The December queue faced an additional delay when a judge briefly paused the review process late last year, further complicating the rollout.

What This Means for the Future of New York’s Cannabis Industry and Applicants Still Waiting for Approval

For applicants who submitted their paperwork in November 2023, the news is mostly positive—many are either receiving their approvals or are nearing the final stages of review. However, those in the December queue may have to wait much longer, as thousands of applications are still in line.

The expansion of New York’s legal cannabis market remains a work in progress, with regulators balancing the need for thorough oversight while trying to speed up the licensing process.

As more licenses are approved and legal stores open, the state hopes to reduce the dominance of unlicensed cannabis retailers, which have flourished due to slow licensing and enforcement challenges.

The next few months will be critical in shaping the future of New York’s cannabis industry, determining how quickly new businesses can become operational and how well the state can compete against the existing underground market.