At least six states have used a lottery to award cannabis business licenses in recent years: Ohio, Missouri, Illinois, Nevada, Maryland, and Kentucky. A lottery is a selection tool, not a shortcut. Applicants still file full paperwork, pay fees, and clear a minimum review. A random drawing then decides who gets a license when qualified applicants outnumber the available slots.
states with cannabis license lottery
States that have used a cannabis license lottery
Ohio
Ohio's Division of Cannabis Control used a lottery in 2024 to hand out provisional adult-use dispensary licenses. Applicants had to pass a qualification review first. Only the applications that cleared that review entered the drawing, and winners still had to build out a compliant site and pass inspection before selling.
When is the Next Cannabis Lottery in New York
Missouri
Missouri runs random drawings for microbusiness licenses. Each round covers 48 licenses split across dispensary, wholesale, and manufacturing categories, and applicants pick one category and one congressional district. The state also used a random drawing to break ties among qualifying medical marijuana applicants in 2019.
how to enter cannabis lottery
Illinois
Illinois turned to lotteries after a scoring error left dozens of applicants tied for a limited pool of adult-use dispensary licenses. Random drawings awarded 185 licenses, with separate drawings held for tied applicants and for the broader qualified pool.
Nevada
Nevada used random drawings for retail dispensary licenses in Clark County in 2018 and for rural counties in 2019. The state capped the number of licenses per county, then drew names when applications exceeded the cap.
Maryland
Maryland held a social equity lottery in 2024 to award the first round of adult-use licenses. Only applicants who received social equity verification entered the drawing. A later round covered the licenses that remained after the first drawing.
Kentucky
Kentucky drew winners by lottery in 2024 for medical cannabis cultivator, processor, and dispensary licenses. The state grouped licenses by type and region, then held a separate drawing for each group once the application window closed.
Prerequisites before you enter a drawing
- A registered business entity in the state
- Proof of capital or a committed funding source
- A facility plan that matches local zoning rules
- Background checks and residency or social equity documentation, if the state requires it
How a state cannabis lottery works
- Read the licensing rules and confirm you meet every eligibility standard, including residency, social equity status, or an existing medical license.
- Form your business entity and gather financing, ownership, and facility documents before the window opens.
- Submit the application and pay the nonrefundable fee inside the open window.
- Wait for the state to screen each application for completeness and minimum requirements.
- Confirm in writing that your application is qualified and entered into the pool.
- Watch the public drawing, which assigns licenses in sequence until each category is exhausted.
- Accept the provisional license, pay the license fee, then complete the buildout and pass inspection.
What a lottery decides and what it does not
A drawing decides only the order in which qualified applicants receive a license offer. It does not waive capital requirements, security plans, or track-and-trace setup. It does not promise a final license either. A winner who misses a buildout deadline, fails a background check, or loses a lease can lose the slot, and the state usually moves to the next name on the list.
How to track upcoming drawings
- Bookmark the licensing page of your state cannabis regulator.
- Sign up for the regulator's email or text alerts for licensing news.
- Write down the application window dates and the announced drawing date.
- Check the state license registry to see how many licenses in your category remain unissued.
Lottery states tend to reopen windows when lawsuits, failed buildouts, or new legislation free up licenses. If you miss one round, keep your entity active and your financing current so you can file in the next one.