Ohio becomes 24th state to legalize recreational marijuana market

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• Ohio becomes 24th state to legalize recreational marijuana market

• Ohio voters on Tuesday approved legalizing the cultivation and sale of recreational marijuana, paving the way for what is expected to become a multibillion-dollar market in the Midwest.

• With about 53% of the votes tallied on Tuesday night, supporters of Issue 2 were winning, capturing 55.7% of the vote versus 44.3% against.

• Ohio is the 24th state to legalize adult-use cannabis – in addition to Washington DC – after a contentious, yearslong process.

• MJBizDaily forecasts adult-use sales could total $1.5 billion to $2 billion in the first year after the market launches and $3.5 billion to $4 billion by the fourth year.

• “The results in Ohio show that cannabis legalization can win anytime and anywhere,” Matthew Schweich, executive director of the Marijuana Policy Project, told MJBizDaily via email Tuesday evening.

• “To achieve victory in a non-presidential year in a red state shows just how strong public support for legalization has become.”

• Ohio is the third state to legalize possession and recreational sales in 2023, following Delaware and Minnesota, which approved adult use through their legislatures.

• Lawmakers in the state’s Republican-dominated General Assembly have vowed to make changes – and they have the authority to alter or even repeal any voter-approved initiatives.

• Bipartisan support for marijuana reform in Ohio provides some industry momentum heading into the new year.

• Vertically integrated multistate operators such as Acreage Holdings and Cresco Labs welcomed passage of adult use in Ohio – and the prospects of hundreds of thousands of new local customers and out-of-state shoppers.

• Ohio has nearly 12 million residents – about three-quarters are older than 21 – so the legislation will vastly expand access to consumers beyond the 180,000 existing medical marijuana cardholders.

• Ohio also borders five states, and of those, only Michigan has a recreational retail market.

• “Today marks a significant turning point for Ohio and for the cannabis industry as a whole,” Acreage CEO Dennis Curran told MJBizDaily via email.

• “This milestone vote is a testament to increased acceptance of cannabis use and the dismantling of long-time stigmas surrounding the plant.

• “Acreage has successfully transitioned to adult-use sales in past new markets and looks forward to providing high-quality cannabis to medical and adult-use Ohio consumers alike.”

• New York-based Acreage also operates five dispensaries in Ohio under The Botanist brand.

• The law also allows: Level 1 and Level 2 marijuana license holders to expand cultivation and manufacturing operations. Adults to possess marijuana 30 days after passage. Home cultivators to grow six plants but no more than 12 per household.

• Adult-use sales are subject to a 10% excise tax in addition to an existing 5.75% sales tax.

• The measure also creates a state agency to develop and oversee recreational marijuana rules and regulations, which must be crafted within nine months.