Ontario will no longer limit the number of cannabis stores in 2020

After two rounds of lottery licensing and a number of delayed cannabis store openings, Ontario has finally decided to move to an open market system that removes the cap on cannabis licenses. The new licensing system will allow an unlimited number of stores to obtain a license over time.

Details have yet to be announced in full, but we already know that the Alcohol and Gaming Commission of Ontario (AGCO) will begin accepting applications for Retail Operator Licenses (ROLs) on January 6, 2020, and will accept applications for Store Openings (SOPs) on March 2, 2020.

Not all applications will be accepted, of course, as each application is subject to review, and will take a different amount of time to process depending on the complexity of the application. These factors could include the number of shareholders or directors attached to the company.

The government expects to open 20 stores a month from April, for a total of 250 cannabis stores by the end of 2020. The new rules will limit each operator to a maximum of 10 stores, a cap that will rise to 30 by September 2020 and 75 by September 2021. The province will also allow click-and-collect and will allow stores to sell ancillary products such as cannabis magazines and cookbooks.

«In response to the federal government's decision to legalize cannabis, our government is committed to opening up the cannabis market in the most responsible way possible,» a declared We've always said that opening more legal stores is the most effective way to fight the illicit market, protect our children and protect our communities. That's our number one priority.«

The license application process is available online on the Ontario website.