Congratulations, Illinois. Illinois has legalized cannabis, and is now the 11th state (plus DC) to legalize cannabis. The implications of this news are myriad and exceptionally large for not only the state, nor the Midwest, but the country. Let’s break down what we know and what it all means for legalized cannabis in the United States.

Illinois legalizing cannabis is BIG (but not totally unexpected)

We talked last fall about how Illinois was a market (in addition to Missouri for medical) that we were exceedingly bullish on in 2019. Turns out we were right. At the Green Market Summit in downtown Chicago, we talked about the implications a legal market would have for investors and what it would take to get licensed in Illinois. Some takeaways, aside from us knowing about emerging canna-markets?? Right here:

• First off, Illinois projects to be a $2-2.5 billion market for the first few years once things get rolling early in 2020.
• Current MMJ licensees have the early advantage, they are the businesses getting first privilege with the initial round of adult-use licensing.
• Fret not, non-MMJ license-holders! Illinois will be having two separate and additional rounds of adult-use licensing (with a possibility of a third round.) The first round will be in May of 2020 and the second will be in December of 2021.
• Municipalities can opt out of recreational cannabis.
• Applicants that fall under “social equity” provisions receive additional points and potential financial resources.
• No entity or individual can hold an interest in more than three cultivation centers or 10 stores. There will be a limit of one craft grower per entity until the completion of a market study.
• An adult could possess and purchase up to 30 grams of cannabis.

Illinois will be the second-largest cannabis market behind California

13 million people live in the Land of Lincoln. Not only does that make Illinois the largest cannabis market in the Midwest, it means Illinois is only behind California. [Cali. triples IL in population, fyi. It’s not a close second. –Ed.] Illinois and Michigan now are twin leaders at the fore of the Midwest’s impressive emerging cannabis industry.

Between Illinois and Michigan being fully legal, and Missouri, Ohio and Oklahoma owning rapidly emerging medical cannabis markets, the Midwest has a seat at the cannabis table and an expanding cannabis footprint to boot. As more and more evidence suggests legalization on the federal level is coming;  what these Midwestern states have done to get this done is a lesson that New York and New Jersey would do well to learn from.

Have questions about getting into the Illinois marketplace? Get in touch with MMLG.