Two more major multistate cannabis operators are entering Texas’ newly expanded medical marijuana market.
Chicago-based MSOs Green Thumb Industries and Cresco Labs were awarded conditional licenses under the Texas Compassionate Use Program (TCUP), the Texas Department of Public Safety (DPS) said April 1.
The licenses are part of Phase II of the program’s expansion, in which a total of 12 new vertically integrated medical cannabis permits were available.
GTI and Cresco Labs join MSOs Trulieve Cannabis Corp. and Verano Holdings, which were among the 9 companies granted preliminary approval to operate in Texas in December.
A third company, Texas Medica Collective, was also awarded a permit last week, according to DPS.
Are marijuana multistate operators in Texas?
Texas’ medical cannabis market is expected to finally take off after lawmakers made tweaks to the program and imposed new restrictions on competition from hemp-derived THC.
Last June, Texas Gov. Greg Abbott signed into law House Bill 46, a broad expansion of medical cannabis.
Under the new rules:
- Instead of being limited to CBD oil, patients can access cannabis products with up to 10 milligrams of THC per dose, with no more than 1000 milligrams (one gram) in a package.
- The number of available vertically integrated businesses licenses for dispensing organizations increased from 3 to 15.
- Qualifying conditions for patients now include chronic pain and terminal illnesses, with the ability to add more conditions without passing a new law.
With its robust appetite for hemp and its large population, Texas is proving an attractive market for MSOs with nationwide footprints.
GTI says it operates 113 retail locations in 14 states, while Cresco Labs reported operating 71 dispensaries in six states as of March 5, according to recent filings.
“Texas patients deserve access to consistent, quality medicine, and we’re excited to deliver it,” Cresco Labs CEO Charlie Bachtell said in a statement.
“Winning a license in Texas through a merit-based application points to Cresco Labs’s deep regulatory expertise and thoughtful approach to meaningful local engagement,” he added.
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How big is Texas’ medical cannabis market?
Medical cannabis patient enrollment in Texas stood at 135,470 at the end of 2025, a year-over-year increase of nearly 32% that’s been attributed in part to awareness of TCUP’s expansion.
With 31 million people in Texas, fewer than 0.5% are enrolled in TCUP.
The conditional licenses do not guarantee immediate operations. DPS will conduct further evaluations, including financial and legal reviews, before granting final approvals.
Licensees must become fully operational within 24 months or risk replacement by one of the 12 businesses on an eligibility list not immediately selected for a permit, DPS said.
