Key Takeaways

• Cannabis law and regulations:
  • Medical cannabis is regulated through the Delaware Medical Marijuana Act and the Delaware Administrative Code Title 16 4470.
  • Recreational cannabis is regulated by the 5001 Rules of the Office of the Marijuana Commissioner.
  • The Office of the Marijuana Commissioner (OMC) is the agency responsible for regulating both the medical and recreational marijuana industries in Delaware.
• Licenses available:
  • There are four types of recreational cannabis licenses in Delaware: retail, cultivation, manufacturing and testing facility. In addition to open licenses, there are also social equity and microbusiness licenses. The state allows vertical integration, however, applicants can submit only one application per license type per county.
• Products legal:
  • Legally allowable product categories include dried flower, vapes, edibles, tinctures, capsules, and other concentrates.
• Taxes:
  • Adult-use cannabis products are subject to a 15% sales tax. Medical cannabis is exempt from sales and excise taxes.
• Market:
  • Medical: Established in 2011, the foundational medical sector remains anchored by just six licensed companies holding 9 cultivation, 7 manufacturing, 15 retail, and 1 testing license. While medical sales peaked at $53.8 million in 2023, they contracted to $44.9 million in 2024 due to cross-border patient migration. This decline intensified following the launch of the adult-use market, which caused average monthly medical sales to contract further to $3.4 million as patients transitioned to recreational purchasing channels.
  • Adult-use: Despite a restricted brick-and-mortar footprint, underlying consumer demand is highly lucrative. The market generated $7.35 million in adult-use revenue in its opening month (August 2025), stabilizing at a steady baseline of $6.6 million to $8.2 million in combined monthly retail sales ($3.5M–$4.75M adult-use and $2.3M–$2.5M medical). Purchasing behavior is highly sophisticated, heavily anchored by usable flower (51.9% share) and inhalable concentrates/vapes (32.3%).
  • Industry analysts via the MJBizFactbook project that statewide cannabis sales will expand to $160 million by the end of 2026. The Office of the Auditor of Accounts (OAOA) estimates that the Delaware adult-use cannabis market could be worth $215 million with more than $43 million in annual tax revenue and creating at least 1,400 jobs.

Cannabis Legalization in Delaware

Medical Cannabis

Governor Jack Markell signed the Delaware Medical Marijuana Act on May 13, 2011, and it became effective on July 1, 2011. The Delaware Department of Health and Social Services (DHSS), Division of Public Health (DPH) is charged with implementing the Delaware Medical Marijuana Act that regulates the medical use of marijuana in Delaware. DPH’s Office of Medical Marijuana (OMM) operates the Delaware Medical Marijuana Program (MMP).

In June 2015, Delaware opened its first medical marijuana dispensary, the First State Compassion Center (FSCC) in Wilmington.

In 2021, Delaware increased the number of medical cannabis business licensees from three to six and all licenses have been issued.

In 2024, Delaware Governor John Carney signed HB 285 into law, expanding access to medical cannabis across the state, including waiving the requirement for a patient to have a debilitating medical condition to qualify for a registry identification card, allowing health care providers to decide whether a patient has a diagnosed medical condition for which they would recommend medical cannabis treatment, allowing patients aged 65 and older to self-certify their qualification for a medical cannabis identification card, and permitting individuals with out-of-state medical cannabis identification cards to make purchases in Delaware dispensaries.

House Bill 425 transitioned the Medical Marijuana Program from the Division of Public Health to the Delaware Office of the Marijuana Commissioner (OMC).

As of July 2024, there were six licensed medical cannabis businesses which possess 9 cultivator licenses, 7 manufacturer licenses, 15 retail licenses and 1 testing laboratory license.

Recreational Cannabis

In April 2023, Delaware joined over 20 other states to legalize recreational cannabis use after House Bill 1 and House Bill 2 became law. The law allows adults aged 21 and over to possess up to one ounce of cannabis, or 850 milligrams of concentrated THC products. Retail sales will be subject to a 15% tax. The OMC has the authority to issue up to the following number of licenses:

• 20 cultivation licenses for each category of open, social equity and microbusiness.
• 10 manufacturing licenses for each category of open, social equity and microbusiness.
• 15 retail licenses, for each category of open and social equity.
• 3 open testing laboratory licenses.
• 2 social equity testing laboratory licenses.

In September 2024, regulations for the adult-use cannabis market in Delaware were finalized and published under the 5001 Rules of the Office of the Marijuana Commissioner.

How to Start a Cannabis Business in Delaware?

Existing medical marijuana businesses in Delaware were allowed to transition to adult-use sales under House Bill 408. While media reports early in the transition phase indicated these medical dispensaries only held conditional status, the regulatory landscape shifted dramatically when the state officially launched adult recreational marijuana sales on August 1, 2025. All eligible medical operators successfully converted to dual-use operational licenses, activating over 10 retail locations across the state to handle immediate adult-use traffic.

According to the Delaware Marijuana Control Act Implementation Timeline, the OMC began accepting applications for all licenses on August 19, 2024, including open, social equity, and microbusiness licenses. The application window closed on September 30, 2024.

Following the lottery held by the OMC on October 24, 2024, OMC awarded 99 adult-use cannabis licenses:

Delaware Hemp Industry