How to Open a Dispensary in Delaware

Delaware Key Takeaways

• Medical Marijuana in Delaware: Delaware legalized medical marijuana in 2011, allowing patients with qualifying conditions to obtain cannabis through state-licensed compassion centers.

• Recreational Marijuana in Delaware: Recreational marijuana was legalized in 2023, permitting adults 21 and older to possess and use cannabis. Sales officially began on August 1, 2025.

• Not Accepting Licenses: Delaware accepted online applications for recreational cannabis business licenses from August 19 until September 30, 2024.

• License Application and Costs: The cost to obtain a dispensary license in Delaware varies by business type, with a standard retail dispensary requiring a $5,000 application fee and a $10,000 license fee, while a Social Equity program dispensary pays a $1,000 application fee and a $4,000 license fee.

• Market Opportunity: Delaware’s recreational cannabis industry is projected to be valued at $215 million and is expected to create at least 1,400 jobs within its first five years, in addition to generating significant tax revenue.

Overview

Looking for information on how to open a dispensary in Delaware? This page provides the latest news and updates on the state’s cannabis industry, offering key insights into what’s expected in the coming months.

Delaware Weed Laws 2024

Is weed legal in Delaware in 2024? Yes, adult-use recreational cannabis in the state is legal. Here are some key points about the current weed laws in Delaware:

1. Legal Age: Individuals must be 21 years of age or older to purchase, possess, and use recreational cannabis.
2. Possession Limits: Adults can legally possess up to one ounce of cannabis.
3. Consumption: Public consumption of cannabis is prohibited. Use is limited to private properties, with the property owner’s consent.
4. Cultivation: Home cultivation of cannabis for personal use remains illegal; however, businesses can apply for a Delaware cultivation license to legally grow cannabis for commercial purposes.

Cannabis Timeline: Major Shifts and Updates

• On May 24, 2022, Delaware Governor John Carney vetoed Bill HB 371, which sought to legalize possession of up to one ounce of cannabis for adults 21 and over. A vote on June 7, 2022, by the House of Representatives failed to override the veto, with a tied result of 20-20 and one abstention.
• On May 19, 2022, another measure (HB 372), which aimed to legalize, regulate, and tax adult-use cannabis, also failed, falling short of the 25 votes needed in the House.
• Despite these setbacks, on March 28, 2023, Delaware’s state Senate passed two bills—House Bill 1, which legalized cannabis for adults, and House Bill 2, which set up the framework for a regulated cannabis market. These bills received a veto-proof majority in both chambers.
• On April 23, 2023, Delaware became the 22nd state to legalize recreational marijuana. House Bill 1 legalized use for adults over 21, while House Bill 2 introduced state regulations for licensing in retail, cultivation, and manufacturing. Governor Carney did not veto the bills.
• On July 17, 2024, Governor Carney signed HB 408, which provides existing medical cannabis companies with a pathway to enter the adult-use market through a “conversion license” category. Additionally, companies affected by local bans can now apply for licenses at new locations.
• Delaware’s recreational marijuana program launched ahead of schedule on August 19, 2024, with an application window extending until September 30, 2024. The state will issue 125 licenses for cultivation, product manufacturing, retail, and testing facilities. License selections will be made by the end of October, with licenses issued starting in November.
• On October 14, 2024, Delaware Governor John Carney signed House Bill 355, providing legal protections to financial institutions serving state-licensed cannabis businesses. The law reduces banks’ fear of prosecution, enabling marijuana businesses to access traditional banking services and reducing the risks of cash-based operations. This promotes safer transactions, lowering the chances of theft and violence. 
• On April 8, 2025, Delaware lawmakers advanced House Bill 110 to resolve an issue delaying the launch of adult-use sales. A House committee unanimously approved this bill, which aligns Delaware’s background check requirements with FBI standards so cannabis business applicants can be vetted and licensed as planned. Regulators had been poised to license the first recreational businesses this month, and this fix – once passed – will get the program back on track for entrepreneurs waiting to open stores and grow facilities.
• On June 25, 2025, Delaware’s General Assembly passed Senate Bill 75, which aims to limit how counties can regulate legal cannabis businesses. If signed into law, SB 75 would prohibit counties from denying required permits to licensed medical or adult-use cannabis operators and would set standard operating rules across the state. For example, counties would need to allow retail marijuana shops to operate at least 9 am–9 pm Mon–Sat and 12 pm–8 pm Sun, and could not ban cultivation in commercial/industrial zones beyond a ½‑mile from another store. The bill, if enacted, would preempt any local ordinances that block or narrow retail licenses, reducing zoning and permitting hurdles for cannabis entrepreneurs.
• On July 1, 2025, Delaware announced that legal adult-use marijuana sales will begin on August 1, marking a major milestone in the state’s cannabis legalization journey. The Office of the Marijuana Commissioner confirmed that all medical marijuana conversion licensees may begin recreational sales on that date. This launch follows a multi-year effort that included the 2023 legalization of adult-use cannabis, the creation of the OMC, and finalized regulations in September 2024. Governor Matt Meyer emphasized that the new industry will prioritize equity, safety, and economic opportunity while generating vital revenue for communities across the state.
• On August 1, 2025, Delaware officially launched legal adult-use marijuana sales, marking a major milestone for cannabis businesses in the state. All seven of Delaware’s medical dispensaries that obtained “conversion” licenses are now permitted to sell to adults 21 and older, effectively opening the recreational market.

The Opportunity Size

The Delaware Office of the Auditor of Accounts projects the state’s recreational cannabis market to reach $215 million. Along with tax revenue generation, the market is expected to create over 1,400 jobs within its first five years.

Delaware Medical Marijuana

Delaware legalized medical marijuana on May 13, 2011, through the Medical Marijuana Act (SB 17). Patients diagnosed with debilitating conditions such as terminal illness, cancer, HIV, anxiety, and decompensated cirrhosis may acquire a medical marijuana card in Delaware to be able to possess up to six ounces of marijuana purchased from a licensed dispensary. The state’s medical marijuana program is tightly regulated, with non-profit compassion centers responsible for distribution.

The first compassion center, First State Compassion Center, has been operational since June 26, 2015. In December 2015, the Department of Health began accepting proposals for new compassion centers, expanding access to medical marijuana in Kent and Sussex counties. As of now, Delaware has seven compassion centers operating throughout the state.

Medical Marijuana Application Fee

In Delaware, the cost of opening a dispensary includes a $5,000 non-refundable application fee paid to the Division of Public Health, Medical Marijuana Program at the time of application. Successful applicants must pay $40,000 for certification and a bi-annual license fee. 

The Department will only accept new applicants for a Compassion Center License when applications are open. At this time, applications are no longer being accepted. When applications are once again accepted, we will provide an update to this section.

Delaware Recreational Use Legalization

On April 23, 2023, Delaware officially legalized recreational marijuana, joining a growing number of states embracing cannabis reform. The legalization was achieved through House Bill 1 and House Bill 2, which set the stage for both personal use and a regulated market.

 House Bill 1 allows individuals aged 21 and older to:

• Legally possess, use, share, and purchase up to one ounce of cannabis.
• It also clarifies that trading cannabis for non-marijuana items is not permitted, preventing misuse of the “gifting” provision.

House Bill 2 establishes the framework for a regulated cannabis market:

• The newly created Office of Marijuana Control Commissioner (under the Division of Alcohol and Tobacco Enforcement) is tasked with overseeing the industry.
• In the first 16 months of the program, up to 30 retail licenses may be issued, with priority given to applicants demonstrating commitments to providing a living wage, health insurance, paid leave, and diverse hiring practices.
• The bill also introduces social equity and microbusiness licenses, specifically designed for Delaware residents, aiming to promote inclusivity in the emerging market.

Delaware Recreational Cannabis Business License Application

The Office of the Marijuana Commissioner (OMC) in Delaware will issue a limited number of licenses for various types of marijuana businesses. The types of licenses include:

License Categories

Open License

This license is issued for the following types of facilities:

• Marijuana Cultivation Facilities
• Marijuana Product Manufacturing Facilities
• Retail Marijuana Stores
• Marijuana Testing Facilities

It is not specifically designated as a Social Equity or Microbusiness license.

Social Equity License

This license is designed to support individuals from communities disproportionately affected by previous marijuana laws. To qualify for a cannabis social equity assistance in Delaware, applicants must meet the following criteria:

• At least 51% ownership by individuals who have resided in a disproportionately impacted area for at least 5 of the past 15 years.
• Owners must have qualifying marijuana-related offenses or be closely related to someone who does.

Microbusiness License

Aimed at small-scale operations, the Microbusiness license is for businesses planning to employ no more than 10 employees. Additionally, the facility must have a marijuana plant grow canopy area of no more than 2,500 square feet, making it ideal for smaller, more localized operations.

License Application Updates

On October 24, 2024, Delaware awarded its first adult-use cannabis manufacturing and cultivation licenses through a state-run lottery, moving forward even as some local jurisdictions remain unprepared. The Office of the Marijuana Commission held a Facebook Live event where 727 of over 1,200 applicants qualified, using random-number software under third-party oversight across 21 drawings for Delaware’s counties. All license categories except retail were allocated; due to high demand, retail permits will be awarded separately in December, with over 800 applications for just 30 permits.

Application Process Requirements

Applicants seeking marijuana business licenses in Delaware must meet the following minimum requirements:

Comprehensive Business Plan:

Applicants must submit a detailed business plan that includes:

• An annual budget and pro forma financial statements.
• Projected revenue and sales estimates.
• Number of employees and anticipated startup costs for the physical location.

Product Diversion Prevention, Safety and Security Plan:

• A detailed plan addressing how the business will ensure safety, security, and the prevention of product diversion.
• This must include compliance with relevant federal, state, and local laws, as well as specific security measures such as alarm systems, video surveillance, and secure storage of marijuana products.

Operations, Training, and Staffing Plans:

• A comprehensive operations plan detailing procedures for the day-to-day running of the business.
• A staff and employee training plan that includes:
  • Proper use of security measures.
  • Specific procedures for responding to emergencies, including robbery or violent incidents.
• Plans for the recruitment and hiring of employees, with a focus on diversity, including people of color, women, and veterans.

Social Responsibility Plan:

• A plan outlining the business’s commitment to social responsibility, including:
  • Diversity goals for the organization.
  • Recruitment and hiring strategies to include people of color, women, and veterans.
  • Promotion of ownership and advancement opportunities within the organization for these groups.

Criminal, Civil, or Regulatory History:

• A complete disclosure of any criminal, civil, or regulatory actions taken against any business entities previously controlled or managed by the applicant or any managing officers.
• This includes details of any criminal charges, civil lawsuits, or regulatory violations.

Capitalization Table:

• Applicants must provide a detailed capitalization table showing:
  • Ownership interest and control of the applicant or license holder.
  • Percentage ownership of each person involved, including board members or officers if the business has a parent company.

Additional Requirements for Certain License Types:

• For Marijuana Cultivation Facilities and Marijuana Product Manufacturing Facilities, applicants must also submit:
  • An environmental and sustainability plan detailing efforts to minimize environmental impact and resource use.
  • A quality assurance plan with written policies and procedures for a comprehensive quality assurance program.

How much is a dispensary license in Delaware?

The cost to obtain a Delaware dispensary license varies depending on the business type. For a standard retail dispensary (Open), the non-refundable application fee is $5,000, and the license cost is $10,000, bringing the total to $15,000. For a retail dispensary Social Equity applicant, the fee is reduced to $1,000, with a license cost of $4,000, making the total cost $5,000.

Licensing Fees for Other License Types 

We will keep you informed about all important updates on how to open a dispensary in Delaware as the state continues to build its cannabis program. As new developments arise that may affect when and how marijuana legalization occurs, joining our Delaware Cannabis Mailing List (below) ensures you’ll stay up to date on hard-to-find legalization news and updates. This includes, but is not limited to, the following:

• What are the most recent developments regarding the legalization of cannabis in Delaware?
• When will applications for new cannabis licenses be available?
• What special programs will be offered?
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