Washington DC Cannabis Legalization

Medical cannabis was legalized in 1998 following the passage of Initiative 59 with the first dispensary opened in 2013. The Medical Marijuana Expansion Emergency Amendment Act of 2014 expanded eligibility for a medical card to include all conditions that a physician feels may benefit from use of medical marijuana.

The Medical Marijuana Reciprocity Amendment Act of 2015, which took effect in 2017, allowed patients from other jurisdictions that had medical cannabis programs equivalent to Washington, DC’s to use their cards at DC dispensaries.

In 2020, a temporary order was issued that allowed medical patients to have cannabis delivered to their homes due the COVID-19 pandemic.

On March 22, 2023, the Medical Cannabis Amendment Act of 2022 (MCAA), signed by Mayor Muriel Bowser in January 2023, became law. The Act overhauls DC’s medical cannabis program. Among other things, the MCAA eliminates the cap on the number of medical licenses available in D.C., allows for vertical integration, permits adults to self-certify their medical use license, provides tax relief, creates new license categories, including internet retailers, and authorizes licensees to apply for “endorsements” such as on-site consumption and delivery for retailers.

How to Start a Cannabis Business in Washington DC?

Testing Requirements

The District’s medical cannabis must pass a series of tests that check moisture content, water activity, terpene and cannabinoid levels (THC, THCA, CBD, CBDA, CBN), foreign matter contamination, microbial and/or mycotoxin contamination, heavy metals (arsenic, cadmium, lead, mercury), pesticide and/or fertilizer residue, residual solvents, and homogeneity (for edibles).

Washington DC Cannabis Medical Market

In 2023, there were 6 medical dispensaries, 8 cultivation centers, 63 registered active caregivers and over 25,000 medical cannabis patients in Washington, DC.

Dispensaries sold about $31 million worth of cannabis products in calendar year 2020 (Jan-Dec) and total legal cannabis sales exceeded $35 million in 2021 reaching $36 million in 2022, according to figures released by the Alcoholic Beverage Regulation Administration (ABRA). Through the year 2023, cannabis sales totaled nearly $38 million, with an average in-store sale of $103 and an average delivery sale of $157.

Cannabis patients spent most of their dollars (66%) on flower. Concentrates, the next largest share of the cannabis sales, captures 20%. Edibles, with almost 12%, came in third. Trim grab 2% of the market and other products categories represented less than 1% of the marketplace.

Washington DC Cannabis Market Perspectives

The District’s recreational cannabis was legalized in 2015 following the passage of Initiative 71. Anyone over the age of 21 can now possess up to four ounces of cannabis and may grow up to six plants.

Marijuana Business Daily predicts that the launch of a recreational cannabis market in Washington DC could generate $50 million in retail sales in the first year and over $200 million in the fourth year.

Washington DC Cannabis Market Infographics