How to Open a Dispensary in the U.S. Virgin Islands

Overview

Are you wondering how to open a dispensary in the U.S. Virgin Islands? This comprehensive guide provides up-to-date information on cannabis dispensary business opportunities and the legal requirements that must be followed when opening a dispensary in the territory.

The U.S. Virgin Islands, situated in the Caribbean Sea, is an unincorporated territory of the United States. Individuals over 21 years old are now legally permitted to consume marijuana for recreational and sacred purposes due to the recent legalization of cannabis in the region. This presents an excellent opportunity to enter the market as demand for high-quality cannabis products has surged. 

Governor Albert Bryan Jr. signed the Virgin Islands Cannabis Use Act (Act 8680) into law on January 28, 2023. The Act permits the use of marijuana by adults for medical, sacred, and other purposes, encompassing the production, distribution, and utilization of cannabis, offering additional economic opportunities for the residents of the Virgin Islands while generating more revenue for the government.

On September 8, 2023, the Virgin Islands Department of Licensing and Consumer Affairs (DLCA) revealed that the Virgin Islands Cannabis Advisory Board (VICAB) has issued draft rules for both medical and adult-use cannabis markets. These regulations are open for public input until October 10 and are undergoing review by the Office of Cannabis Regulations, VICAB, and the Department of Justice.

The Rules and Regulations for the Virgin Islands Cannabis Use Act of 2023 were officially approved by the Cannabis Advisory Board on April 17, 2024, and signed into law by Governor Albert Bryan Jr. on May 4, 2024. This extensive regulatory framework, created under Act 8680, governs all aspects of cannabis use in the U.S. Virgin Islands.

InMarch, 2025, the US Virgin Islands Office of Cannabis Regulations accepted applications for cannabis cultivation licenses and micro-cultivation permits. Eligible cultivators can operate on properties zoned A-1, A-2, R-1, or R-2, as determined by the Department of Planning and Natural Resources. Micro-cultivation permit holders may grow up to 50 flowering plants, while those with a standard cultivation license can cultivate up to 1,000 plants. 

In July 2025, the U.S. Virgin Islands Office of Cannabis Regulation (OCR) officially opened the application portal for adult-use dispensary licenses. A total of 17 licenses are available: 7 for St. Croix, 7 for St. Thomas, and 3 for St. John. Interested applicants must submit a $10,000 application fee. While an exact closing date has not been confirmed, the OCR has indicated the application window may close around September 30, 2025.

To help ease the potentially complicated process of starting a dispensary, we’ll update this article regularly with any relevant news about the law to ensure you’re provided with the most up-to-date information.

Medical Marijuana 

On January 19, 2019, Governor Albert Bryan Jr. signed the Medical Cannabis Patient Care Act into law. The act was sponsored by Senator Positive T.A. Nelson. This legislation would establish a strong medical cannabis program for the Virgin Islands, which will be available to locals as well as medical tourists. Tourists visiting the US Virgin Islands who possess temporary medical cards have the opportunity to purchase a maximum of 3 ounces of medicinal cannabis within a 15-day period.

Patients who meet the requirements can submit an application to the Office of Cannabis Regulation (OCR) for a registration card that will permit them to cultivate medicinal cannabis, use it, and obtain it safely. To be eligible, individuals need to demonstrate that they suffer from a medical condition that meets the criteria for qualifying as incapacitating and that they have written certification from a healthcare practitioner with whom they have a legitimate connection.

The United States Virgin Islands approved legislation legalizing the use of cannabis for medicinal purposes; however, the implementing rules were never finished and so the law was never completely put into effect. The OCR had given its approval to the proposed rules and regulations for the MMJ sector in 2022, but those rules have not yet been finalized despite having been subject to a public review in September of the same year.

Medical Marijuana Program Opportunities

The Department of Licensing’s OCR is responsible for licensing cannabis testing facilities, cultivation facilities, cannabis product manufacturing facilities, and dispensaries. The fees for medical cannabis business applications vary from a maximum of $500 for a tier 1 license, allowing the growth of up to 100 plants for farmers, to a maximum of $5,000 for dispensaries, cannabis product manufacturers, and the largest growers. Unsuccessful applicants are eligible for a refund of half the application fees.

On August 10, 2022, the V.I. Cannabis Advisory Board (VICAB) in the U.S. Virgin Islands gave unanimous approval to draft regulations for their medical cannabis program. The draft was made publicly available by the Office of Cannabis Regulations on August 12. The text of the bill establishes application fee limits, which cannot be surpassed during the first two years. Furthermore, the fees for Certificates to Operate are capped at the approved license application fee before starting business operations.

Cultivation Licenses

• Level I – Not to exceed 100 plants: $1,000; $500 for existing farmers 
• Level II – Not to exceed 500 plants: $2,500.00, $2,000.00 for existing farmers 
• Level III – Not to exceed 1,000 plants: $5,000.00, $4,500.00 for existing farmers 

Dispensary License: $5,000

Cannabis Product Manufacturer License: $5,000

Research and Development License: $1,000

Approved Vendor Certificate: $1,000

It is important to note that unsuccessful applicants will receive a refund of 50% of their application fee. 

Recreational Use Legalization

In November of 2022, Senators Janelle K. Sarauw and Angel L. Bolques proposed Act 8680, the Virgin Islands Adult Use Cannabis Act. Act 8680 was approved by a Senate vote of 11 to 1 on December 30, 2022. After arriving on his desk on January 9, Governor Bryan had ten days to either sign it, reject it, or let it go into force without his signature. A day before the deadline, Bryan put his signature on the measure.  

The Virgin Islands Cannabis Usage Act (Act 8680), signed into law on January 18, 2023, legalizes cannabis for adults to consume for medical, sacramental, and other purposes and sets guidelines for its cultivation, distribution, and consumption.  

The administration has said that the bill would ultimately raise more money and increase economic possibilities for residents of the Virgin Islands. The drafting and approval of legislation required for adult-use enterprises mean it may be some time before recreational business possibilities become accessible in the area. Regulations are needed as soon as possible under Act 8680.

Co-sponsor and ex-Senator Janelle Sarauw predicted it would take four to five years to implement the law’s provisions due to the absence of necessary infrastructure.

Key provisions of the USVI legalization statute are as follows:

Permits adults over the age of 21 to carry up to 2 ounces of marijuana for personal use, along with 0.5 ounces of concentrate, and 1 ounce of products like edibles for recreational, sacramental, and other purposes.

Manufacturers, sellers, growers, micro-growers, labs, and dispensaries will all need separate licenses and permits to legally operate in the cannabis industry.

Each of the territory’s major islands will have a maximum allowable number of licenses that OCR may issue.

From January 1, 2025, regulators will be able to issue more licenses if they perform a study showing that doing so is necessary to fulfill customer demand.

Within a year of the rules and regulations being implemented, the law mandates that the office begin accepting applications for licenses and permits.

Sacramental users of marijuana have the option of applying for their own growing licenses.

Opportunities and Challenges in the U.S. Virgin Islands Cannabis Industry

The U.S. Virgin Islands’ cannabis industry presents a wealth of opportunities for entrepreneurs, particularly those who can navigate its structured licensing process and financial requirements.

1. Limited Licensing Creates High Market Value – One of the most significant advantages is the limited number of licenses available, which helps maintain high market value for each licensee. With only 17 dispensaries permitted to operate, the estimated $66 million market will be split among a small number of businesses, ensuring a solid revenue potential.
2. Multiple License Types Available – This flexibility allows entrepreneurs to enter the market at different levels, whether through small-scale boutique cannabis cultivation, laboratory testing, or tourism-focused consumption lounges.
3. Strong Local and Global Networking – Organizations like VI Cana Culture are working to connect local entrepreneurs with national and international industry experts, providing valuable resources, partnerships, and potential investment opportunities.
4. Social Equity Incentives – The government has introduced measures to encourage diversity and inclusion in the industry by awarding bonus points in the application process to individuals impacted by prior cannabis-related arrests, members of religious groups affected by past cannabis laws, as well as women and service-disabled veterans.
5. Support for Expungement – To further support local entrepreneurs, the government is offering legal assistance to expunge criminal records related to cannabis offenses, ensuring that more individuals can participate in the industry without legal barriers.
6. Business Support from Cannaspire – Consulting firms like Cannaspire offer end-to-end business support, including licensing applications, business plan development, compliance assistance, and vendor vetting for crucial systems like point-of-sale (POS) and security infrastructure. This provides aspiring business owners with a structured path toward success.
7. High Tourism Potential – Given the strong tourism industry in the Virgin Islands, there are major opportunities for cannabis-focused businesses that cater to visitors. On-site consumption lounges, cannabis tours, farm experiences, and cannabis-infused hospitality offerings can all thrive in this environment.
8. Non-Touch Cannabis Businesses – Entrepreneurs who do not want to handle cannabis directly can still participate in the industry by offering support services such as HVAC systems for climate control, security system installations, engineering and compliance consulting, as well as branding, marketing, and other professional services.

However, despite these opportunities, there are several challenges that entrepreneurs must be prepared to face.

1. Strict Licensing Process – The application process is merit-based, meaning applicants must submit highly detailed business plans that demonstrate financial stability, compliance with regulatory standards, and a strong operational structure. High-scoring applications will be prioritized, making competition fierce.
2. High Startup Costs – Entering the cannabis industry requires significant capital investment. Business owners must secure funding before applying and be prepared for costs related to facility buildouts, security measures, seed-to-sale tracking software, and employee training.
3. Residency Requirements – Applicants must meet strict residency criteria and ensure that at least 51% of their business is locally owned, which may limit external investors’ involvement.
4. Hurricane Risks & Infrastructure Issues – The region’s vulnerability to hurricanes poses a major operational challenge, with potential power outages leading to crop loss and business disruptions. Entrepreneurs must invest in solar panels, backup generators, and modular HVAC systems to ensure uninterrupted operations.
5. Banking & Financing Limitations – Due to federal restrictions on cannabis, traditional banking options are limited. Most financing must come from private investors, credit unions with strict lending policies, or personal networks such as friends and family.
6. Regulatory & Compliance Hurdles – Businesses must comply with strict regulatory requirements, including security protocols, inventory tracking, and good manufacturing practices (GMP). Employee training, environmental impact planning, and adherence to operational regulations are crucial for maintaining compliance.
7. Market Uncertainty & Competition – While the government has implemented license caps to prevent market oversaturation, future changes in regulations may increase competition. Some states, like Mississippi, have suffered from oversaturation, where too many dispensaries dilute the market and reduce profitability.
8. Logistical Issues & Supply Chain Dependence – Since the Virgin Islands rely on imported goods, businesses must contend with high shipping costs and potential delays in receiving critical supplies like soil, equipment, and packaging materials. Customs and agricultural restrictions may further complicate the supply chain.
9. Public Perception & Stigma – Despite legalization, public perception of cannabis use may still be mixed. Business owners must focus on building brands that emphasize quality, safety, and professionalism rather than recreational stereotypes.

You can watch our full presentation on Cannabis Business Start-Up 101: US Virgin Islands Opportunities and Challenges, where we cover key details on regulations, licensing, market potential, and industry challenges, here: