185 New Illinois Pot Shop Licenses Released As Judge Lifts Stay

CHICAGO — The number of legal locations to buy marijuana in Illinois is set to more than double after a judge on Friday lifted a stay on granting 185 pot shop licenses.

The stay had blocked state regulators from issuing the licenses, which were awarded in three lotteries conducted last July.

Lawmakers crafted legislation allowing the trio of lotteries early last year in an attempt to resolve the legal and logistical logjam that has left a small group of multi-state operators dominating the lion's share of the Illinois cannabis market.

Cook County Circuit Judge Michael Mullen granted a motion to lift the stay from Wah Group, also known as Leafing Life Dispensary, one of the license applicants that sued the state over the original lottery process. The stay was originally put in place by Circuit Judge Moshe Jacobius, who retired earlier this year.

Under state rules, those awarded dispensary licenses have six months to find a location, although state regulators can grant a 180-day extension after that, according to Crain's Chicago Business, which first reported the lifting of the stay.

According to a motion filed earlier this week Wah's attorney, first reported by GrownIn, it is no longer necessary to place a hold on the licenses because the relief the company seeks is unrelated to the reasons for the stay.

Because Wah has been granted a perfect score, it no longer matters that the original lottery only allowed veteran-owned applicants to receive perfect scores, and questions about the constitutionality and due process no longer apply, the attorney argued.

Since the legalization of recreational weed nearly 2½ years ago, no licenses have been issued to anyone but the holders of the original 55 medical marijuana licenses established by a pilot program under former Gov. Bruce Rauner.

Each of those license holders was permitted to open a second, recreational location after the legalization of adult-use cannabis, leading to the state's current 110-dispensary cap.

Related: Pot Shop Lottery Picks 55 Of 185 Winners Of New Dispensary Licenses

Under the terms of the Cannabis Regulation and Tax Act, which legalized recreational marijuana statewide, the first additional licenses were supposed to be issued two years ago.

Gov. J.B. Pritzker's administration, which initially attributed problems with the licensing and lottery process to the coronavirus pandemic, has since faced a series of lawsuits with various allegations of unfairness or unconstitutionality.

Critics have pointed to tax revenue lost to black market marijuana dealers due to a lack of competition in the Illinois market. Former state Sen. Rickey Hendon, one of the winners of a pot shop license held up in court, asserted the state was losing out on $1 billion in annual tax revenue as a result.

All 185 lottery winners set to receive a license as a result of Friday's ruling initially applied in early 2020. No new applications have been processed since then.

In March, Pritzker announced changes to the application process for pot shop licenses aimed at simplifying it for the next round of 55 new licenses. According to the Illinois Department of Financial and Professional Regulation, applications for those licenses are expected to be available by early fall.

Pritzker said the proposed changes for future applications will allow for the diversification of ownership in the Illinois cannabis industry, which is currently dominated by wealthy white men.

"From day one, Illinois has been dedicated to leading the nation in an equity-centric approach to legalizing cannabis," Pritzker said at the time, "and these proposed changes to the application process will make it much easier for social equity applicants to pursue licenses."

Related: Amid Pot Shop License Legal Limbo, Simpler Process Proposed