Limited number of Kentucky marijuana business licenses will be issued by lottery

Medical marijuana businesses will be able to open much sooner than expected since the licensing process has been expedited. But, how exactly will licenses be issued?

The application process will open July 1 and run through August 31. Business licenses will then be given out in a lottery system, with 10 going to processors and 48 going to dispensaries. This lottery is expected to occur in October, 2024.

Medical cannabis will be available to qualifying Kentucky patients starting in January of next year, but in the meantime, the state has to build the infrastructure that will make its new medical cannabis program work.

“That whole system has to happen within our borders,” Beshear explained at a news conference earlier this month. “Under Senate Bill 47, we were going to have a challenge. The ability to purchase medical cannabis was supposed to begin Jan. 1, 2025, and that’s the first time we could license a business. So there was no way everything was going to be up and running.”

But now that licenses can be issued this fall, patients with a Kentucky medical marijuan card may be able to buy from an in-state dispensary in early 2025. Governor Beshear’s administration expects 70,000 to 90,000 Kentuckians will apply for a medical marijuana card and they will be eagerly awaiting the opening of Kentucky medical marijuana dispensaries.

Where will medical marijuana dispensaries be located in Kentucky?

Medical marijuana businesses will open across the state of Kentucky as early as fall of 2024, but dispensary sales cannot begin until 20205. Photo from Forbes/Getty.

The Kentucky Medical Cannabis Program has split the state into 11 regions for licensing purposes. All regions will have four dispensaries, with the exception of the two most populous regions (home to Louisville and Lexington). These areas will have six dispensaries. In the future, more marijuana business licenses may be issued.

Local governments will have the option to opt out of having marijuana businesses within their towns/cities. But, Kentucky voters would have the ability to reverse such decisions.

How can I get a medical cannabis business license in Kentucky?

The state application will request an overview of the business, financial information, the business’ history, its operation plans, business location, guidance for employees and ownership and attestations, along with contact information and a signature.

Governor Beshear said applicants will have the opportunity to fix any problems that arise with their application after submission.

Gov. Andy Beshear responds to a question during an interview, Dec. 19, 2023, in Frankfort, Ky. (AP Photo/Timothy D. Easley, File)

Licenses will be issued via lottery with the hope of eliminating any favoritism and resulting litigation. Governor Beshear said the Kentucky Medical Cannabis Program is working with the Kentucky Lottery to create a fair lottery system for awarding licenses to applicants.

“That is only if the number of applicants exceeds the number of initial licenses available,” Sam Flynn, the executive director of Kentucky’s medical cannabis program said. “So, for example, if there is a dispensary region and four people apply, those four businesses get a license and no lottery is required.”

Where can I go for more information about the Kentucky medical marijuana business licensing process?

The Kentucky Medical Cannabis Program will continue to release updates.