Cannabis regulators in Rhode Island are approaching a pivotal moment in the state’s adult-use rollout: how – and how quickly – to award up to 20 new retail cannabis licenses.
The Rhode Island Cannabis Control Commission is preparing to conduct a lottery as early as May, but commissioners have not yet decided whether all approved licenses should be issued at once or staggered over time to prevent potential market disruption.
Rhode Island Cannabis – From 24 Licenses to 20
Originally, the state planned to award 24 retail licenses. However, after reviewing application distribution across six geographic zones, regulators reduced the maximum to 20.
By the December 29, 2025 deadline, 98 applications had been submitted. Two applicants have since withdrawn, according to Cannabis Administrator Michelle Reddish and commission spokesperson Charon Rose.
Applications break down as follows:
- 56 general retail licenses
- 19 worker-owned cooperative licenses
- 23 social equity licenses
State regulations cap retail licenses at four per zone, with at least one reserved for a social equity applicant and one for a worker cooperative.
Zone 6, which includes Pawtucket, East Providence, and Bristol and Newport counties, accounted for nearly one-third of all applications (31 total). In contrast, Zone 1 received only two applications, both from social equity applicants. Because of this uneven geographic interest, regulators determined that only 20 licenses could realistically be issued.
Commission staff are currently vetting applications. Under the timeline adopted last fall, regulators have 90 days from January 1 to confirm eligibility before applicants can be entered into the lottery. Finalists must also secure local municipal approvals before participating in the drawing.
A Debate Over Timing: Stability vs. Speed
At the center of the commission’s latest meeting was a critical question: Should all approved retailers launch at the same time?
Commissioner Robert Jacquard raised concerns shared by several stakeholders – that introducing all new retailers simultaneously could trigger rapid price compression in Rhode Island’s relatively small market.
Experiences in other states have amplified those concerns:
- In Michigan, total cannabis sales reached record highs in 2025, yet revenue declined due to steep price drops.
- Oregon continues to struggle with oversupply and falling wholesale prices.
- In Massachusetts, operators have described what many call a “race to the bottom,” leading to business closures and shrinking margins.
Reddish emphasized that regulators may need to consider proactive strategies to maintain long-term market stability rather than reacting after price collapse occurs.
Industry Voices Split on Expansion
Industry stakeholders offered sharply differing perspectives.
Kevin Rouleau of Newport Cannabis Company warned that immediate saturation could hurt cultivators most, forcing wholesale prices down to unsustainable levels.
On the other hand, Nicholas Lacroix of the Rhode Island Growers Association expressed confidence that the supply side could absorb new retailers without destabilizing the market.
Attorney Allan Fung, representing several prospective applicants, urged the commission not to delay the process. He argued that applicants have already invested significant time and capital and that market forces – not regulatory pacing – should determine winners and losers.
Spencer Blier, CEO of Mammoth Inc., suggested that delaying new entrants primarily benefits the state’s existing hybrid medical operators, who currently hold a competitive advantage.
A Slow Road to Adult-Use
Rhode Island’s recreational cannabis market has already faced delays. More than a year passed before the commission was formally seated in June 2023. Final retail regulations were not adopted until May 2025.
In the interim, eight existing medical dispensaries have been permitted to operate under hybrid licenses, allowing them to serve adult-use customers while the broader retail licensing process unfolds.
Leadership changes have also added uncertainty. Former Commission Chair Kim Ahern stepped down to run for attorney general, and Governor Dan McKee has not yet appointed a successor.
With no vote taken at the latest meeting, commissioners tabled a decision on how many licenses to release at once. The issue is expected to resurface at the commission’s next scheduled meeting on March 20.
What This Means for Cannabis Operators
Rhode Island now faces a familiar crossroads seen in emerging cannabis markets nationwide:
- Expand rapidly and risk price compression
- Pace growth carefully and risk accusations of protectionism
For operators, whether retailers, cultivators, or social equity applicants, the key takeaway is that regulatory timing can be just as impactful as licensing itself. Market dynamics, wholesale pricing trends, and competitive positioning will all hinge on how the commission ultimately sequences new store openings.
What applicants need to remember is this: navigating a competitive cannabis licensing environment requires more than luck in a lottery.
Whether you’re preparing for retail launch, forecasting wholesale pricing impacts, or strengthening compliance systems ahead of market expansion, Canna Business Services helps operators build stable, scalable operations in evolving regulatory environments.
From financial modeling and compliance strategy to operational readiness and inventory controls, our team supports cannabis businesses at every stage of growth.
Contact us today to position your business for long-term success in Rhode Island’s expanding cannabis market.
