3-minute read
- The delay of recreational cannabis sales in Delaware is allowing the illegal market to thrive, posing health risks to consumers due to untested products.
- Neighboring states like New Jersey are reaping significant tax revenue from their established cannabis markets, highlighting the economic potential Delaware risks missing.
- A timely launch of recreational cannabis sales in Delaware is projected to generate millions in tax revenue, providing a crucial boost to the state’s economy and public services.
- The delay in opening the recreational market jeopardizes the state’s commitment to social equity, hindering opportunities for communities disproportionately affected by cannabis prohibition.
- Governor Meyer’s leadership is crucial in ensuring a swift and successful launch of the recreational cannabis market, fostering economic growth, public safety and social justice in Delaware.
Editor’s note: This is an open letter to Gov. Matt Meyer.
Dear Governor Meyer,
Congratulations on your inauguration as Delaware’s 76th governor. Your extensive background in public service, including your tenure as New Castle County Executive and your diplomatic mission in Mosul, Iraq, reflects a profound commitment to leadership and community development.
As president of the Delaware Cannabis Industry Associationm, or DCIA, I have witnessed firsthand the transformative potential of a well-regulated cannabis market. Founded by Delaware’s medical marijuana operators, DCIA now represents all of the state’s license holders, advocating for equity, access and safe products. We partner with state government and local organizations to develop a robust, thriving and safe cannabis industry in the First State.
I wanted to share my perspective, based on my years of service to the country and years of responsible work in the cannabis industry, on how beneficial it will be for the state to follow through on its commitment to a timely start to recreational cannabis sales.
Consumer safety is paramount
Delaware’s recreational cannabis program risks mirroring New York’s challenges. A sluggish licensing process enabled illegal retailers to flourish, undermining legal businesses. These unlicensed shops sold untested products, posing numerous health risks to consumers. The state’s enforcement efforts struggled to keep pace, leading to a thriving illicit market that outcompeted the legal one. This situation highlighted the need for more efficient licensing processes, an operating recreational market, and robust enforcement to support the legal cannabis industry. Delaware residents deserve a regulated marijuana and hemp industry in the State. Unfortunately, turning a blind eye and delaying the start of recreational sales is still making a decision to hurt Delaware and its people.
Regional competitiveness can impact Delaware
Neighboring states are rapidly advancing their cannabis industries while collecting significant tax revenues. To remain competitive and prevent economic leakage, Delaware should expedite its market launch. For example, New Jersey’s cannabis market has already generated over $120 million in tax revenue, proving the economic potential of a well-regulated market.
This proactive approach will attract businesses and consumers, establishing the state as a leader in the region. Embracing this opportunity aligns with the collaborative spirit of the Delaware Way, fostering cooperation among stakeholders to achieve common goals — a robust and thriving First State.
Economic benefits
Launching Delaware’s recreational cannabis market on April 1, 2025 presents a significant opportunity to bolster the state’s economy and deliver critical tax revenue this year. Projections from the Office of the Marijuana Commissioner indicate annual marijuana sales could reach $281 million, generating an estimated $42 million in tax revenue. This influx of funds comes at a critical time, as the Delaware Economic and Financial Advisory Council, or DEFAC, anticipates “near-level revenues” — essentially flat growth in state income — over the next several years.
However, it does not look like April 1 will be the date when recreational sales begin. Unfortunately the state has not communicated what the new plan is. If we can get the market open in a timely manner, Delaware can secure a new and vital revenue stream supporting public services, education and infrastructure. This proactive approach will also help mitigate fiscal challenges stemming from stagnant revenue growth.
Social equity
An earlier launch provides a crucial opportunity to support communities that suffered under cannabis prohibition. We are grateful for the leadership of Commissioner Robert Coupe, who laid the groundwork for equitable licensing and prioritized support for marginalized communities. The founders of the Delaware Cannabis Industry Association are fully committed to seeing it succeed. From facilitating social equity education sessions throughout the summer, to working with DelTech on their cannabis training program, and providing $4.2 million of seed capital for the program, the members of DCIA are delivering on our promise to the State.
However, this commitment requires the State to honor its pledge to open the market on April 1 or give us a concrete date when it will open. By meeting this deadline, Delaware can set a national standard for social justice in the cannabis industry. DCIA remains dedicated to ensuring meaningful business opportunities for marginalized communities.
In conclusion
Governor Meyer, our shared experiences in Iraq have instilled in us a deep understanding of resilience, leadership, and the importance of timely action. Ensuring an on-time recreational cannabis market launch offers economic growth, enhanced public safety, regional competitiveness and social equity. I trust your leadership will guide Delaware toward a prosperous and just future.
Sincerely,
James Brobyn
President, Delaware Cannabis Industry Association
