The number of licensed marijuana businesses in Oklahoma has fallen by one-third this year amid a regulatory crackdown and shifting market conditions inside the cannabis industry.
According to data published by the Oklahoma Medical Marijuana Authority, there are about 5,800 licensed cannabis businesses as of this month. A year ago, there were over 8,700.
That includes all types of business licenses.
The industry was collared in 2022 when lawmakers placed a moratorium on the issuance of new licenses for dispensaries, growers and processors. The moratorium is scheduled to end in August 2026.
With a moratorium in place, the only way to launch a new business is to acquire an active license. Lawmakers added extra steps to the license transfer process this year by requiring the Oklahoma Medical Marijuana Authority’s approval.
More:Medical marijuana business owners sound off on ‘excessive’ rule changes in Oklahoma
In the six years since Oklahomans voted to legalize medical marijuana, the number of businesses ballooned and then began a steady decline. There were fewer limits on the licensure process in the early years, which led to a strong crackdown against ghost ownership and the foreign-controlled black market.
In 2021, Oklahoma had about 49 marijuana dispensaries for every 100,000 residents, outnumbering the more mature markets in Oregon and California.
Earlier this year, the Oklahoma Medical Marijuana Authority laid off 10% of its staff with Executive Director Adria Berry citing the shrinking industry and less-than-expected appropriations from the state Legislature. That decision sparked an outcry among industry leaders, with Oklahomans for Responsible Cannabis Action criticizing the agency’s “extreme backlog of license renewals” and ownership transfer approvals that the advocacy group said contributed to the plunge in licenses.
The industry also faces falling prices and oversupply, which has led to some owners closing their doors.
More:Oklahoma Medical Marijuana Authority cuts staff, citing short allocation, lower licensing
As of December, there are 5,811 licensed medical marijuana businesses in Oklahoma. Here are the most current stats provided by the Oklahoma Medical Marijuana Authority:
After six years, Oklahoma's cannabis industry faces steep plunge in numbers – Oklahoman.com
