Ohio Cannabis Licensing

Ohio's market includes 204 dual-use dispensaries, 37 cultivators, 46 processors, and 8 testing labs. SB 56 capped dispensaries at 400 and eliminated the small-scale Level III cultivator license that Issue 2 created for social equity.

Last verified: March 2026

Current License Types and Counts

Ohio's cannabis market operates under four primary license categories, all overseen by the Division of Cannabis Control (DCC):

License Type Active Details
Dispensary (Dual-Use) 204 Serve both medical and recreational; capped at 400 under SB 56
Level I Cultivator 23 Up to 25,000 sq ft canopy
Level II Cultivator 14 Up to 15,000 sq ft canopy
Processor 46 Edibles, concentrates, topicals, tinctures
Testing Laboratory 8 Independent potency and safety testing

Cultivator Tiers

Ohio operates a two-tier cultivation system:

  • Level I: Up to 25,000 square feet of canopy. Application fee: $20,000. License fee: $180,000. These are Ohio's largest legal grows, and 23 are currently operational.
  • Level II: Up to 15,000 square feet of canopy. Smaller scale with proportionally lower fees. 14 are currently operational.

Issue 2 originally created a Level III cultivator tier at just 5,000 square feet — designed as an accessible entry point for small-scale and social equity cultivators. SB 56 eliminated Level III entirely, closing off the lowest-cost pathway into cultivation. This was one of the most criticized aspects of the legislature's rewrite of the voter-approved initiative.

The 400 Dispensary Cap

SB 56 set a hard cap of 400 dispensary licenses statewide. With 204 currently operational, there is room for near-doubling of the retail footprint. New licenses will be issued by the DCC through a competitive application process, though the timeline for additional licensing rounds remains unclear as of March 2026.

Dispensary Licensing Fees

Fee Type Amount
Dispensary application fee $5,000
Dispensary license fee (2-year) $70,000
Level I cultivator application fee $20,000
Level I cultivator license fee $180,000

These fees place Ohio in the mid-to-high range nationally. The $200,000 total for a Level I cultivator license is a significant barrier to entry, particularly for small operators and social equity applicants — a barrier made worse by the elimination of Level III.

HB 611: Vertical Integration for Processors

Pending legislation HB 611 would grant "orphaned" processors — those currently limited to processing only — the ability to obtain cultivation and retail permits, enabling vertical integration. If passed, this would fundamentally reshape Ohio's market structure by allowing processors to control the supply chain from seed to sale. The bill remains under consideration as of March 2026.