More than 18 months after Kentucky’s medical marijuana program launched, supply still can’t keep up with patient demand.
At an Aug. 21 ribbon-cutting ceremony for Holler Cannabis Co., Gov. Andy Beshear called the program a success while acknowledging it hadn’t moved as fast as he’d hoped, according to Louisville Public Media.
“Our goal was to do this in a safe, highly regulated way, where we convinced even the skeptics that this could be done correctly, and I believe that it has,” Beshear said at the ribbon-cutting.
What’s causing Kentucky’s cannabis supply issue?
Kentucky legalized medical marijuana in 2023 and launched the program on Jan. 1, 2025.
Although the state held a cultivation lottery in October 2024, there was no product available on the program’s launch date because growing cannabis takes time.
Today, 39 medical cannabis businesses are open:
- 11 cultivators
- Two safety compliance facilities
- Five processors
- 21 dispensaries
Five more cultivators are expected to open, along with additional dispensaries, according to Louisville Public Media.
Sales could reach $126 million in 2026, according to an MJBiz Factbook projection.
More than 24,000 Kentucky residents hold medical marijuana cards, Louisville Public Media reported. A policy change earlier this year restricts cardholders from buying out of state, putting more pressure on an already constrained supply chain.
Kentucky’s first dispensary, The Post in Beaver Dam, opened Dec. 13. It sold out almost immediately and closed within days. The Speakeasy Dispensary in Lexington opened Jan. 15, also with limited supply, selling on a “while supplies last” basis with purchase limits in place.
A lack of cultivation drove both shortages.
Why did the licensing lottery add to the delay?
The 2024 license lottery drew sharp criticism. Business owners objected to a $5,000 application fee and a $30,000 nonrefundable license fee, saying the structure gave larger companies an advantage. Some entered the lottery through multiple LLCs to improve their odds.
State Auditor Allison Ball to launch an investigation into the process in April. No public updates have followed.
Beshear expanded the list of qualifying conditions in June, allowing more residents to seek cards.
