What’s the state you’re paying most attention to in 2025, either in switching from medical to adult-use or some form of legalization for the first time?
Davis Tiburzi | CEO | CannaZip
Florida and other southern states, as these seem to be the most resistant to cannabis-friendly laws, and thus these could be the last pillar to fall before federal policy changes, so if we start to see these states roll over from a policy standpoint, this would serve as the canary in the coal mine preceding federal policy change.
In terms of paying attention to states, we tend to not treat any one of the markets with a true preference. All of the markets, whether emerging for the first time or switching from medical to adult-use, hold an equal level of importance. With that being said, we are focusing a lot of our growth plans for store openings this year in the Ohio market.
As someone living in New York, I’m paying close attention to how the state handles its regulations regarding microbial contamination, yeast and mold levels in cannabis flower. These are essential issues that directly impact the quality of the products available to consumers. Additionally, I believe New York needs to amend its regulations to allow indoor cultivation, especially given the state’s climate. Indoor growing is essential for consistency and quality, and it would be beneficial for the state’s cannabis industry to recognize and adapt to this need.
Pennsylvania is a powerhouse state, and legalization could make it an industry leader. With neighboring states thriving, it has massive potential — especially in its cities and border towns. Just imagine the sales potential of Super Bowl weekend alone if full legalization were already in place.
I’m watching the Ohio and Texas markets closely but as differing channels and for different reasons.
Missouri is in its third year of AU sales and remains robust. Businesses sold nearly $1.5 billion worth of cannabis in 2024 and in December, AU sales topped $115 million — the best month on record.
Curious to see, if Kansas ever legalizes and/or if Illinois lowers prices, will they have an impact on Missouri sales? Either way, Missouri has some good product.
We are opening three new stores in New York in 2025 so that is our focus. Minnesota is also interesting with an application portal about to open for more licenses. As a regional player in New England, we are always keeping tabs on what the eventual adult-use rollout will look like in New Hampshire. I’m also always looking for an excuse to get down to Florida.
New York, hands down, is the most fascinating. The stark contrast between the densely populated NYC market and the rest of the state is remarkable to observe. Illicit sales remain a major problem in NYC and surrounding areas, and the lack of clear support where it’s needed makes it difficult for legitimate businesses to achieve long-term viability. The market will eventually stabilize, but it should be easier for licensed operators to succeed than it is today.
Kentucky. It’s a limited-license state, and the recent cannabis lottery just created an incredible financial opportunity. The winners of those licenses essentially have a license to steal.
With a tightly restricted number of operators, they’ll face minimal competition while demand skyrockets. That’s the golden formula for high-margin, high-value businesses. In contrast, states with unlimited or loosely regulated licenses see profit margins collapse as too many players flood the market. Kentucky’s market will be one to watch closely, especially for those who got in early.
Florida. No question. The medical market there is massive, with no cap on dispensary licenses, and these stores aren’t tiny boutique shops, they look like full-blown Walgreens. The second adult-use legalization hits, Florida’s going to flip the script and become the biggest revenue driver in the legal cannabis space. It’s not just potential; it’s inevitable.
I’m keeping an eye on Texas, not because it’s likely to go recreational anytime soon, but because of the explosion of THCA and CBD-derived hemp dispensaries popping up across the state. I recently heard there are more than 7,000 hemp dispensaries in Texas, and that’s something that will eventually need to be addressed or regulated in some capacity. It’s wild down there right now.
Pennsylvania. They’ve been pushing for adult-use legalization for years, and the majority of the population already supports it. Almost all of the states bordering Pennsylvania have legalized, so the lost revenue and taxes from residents going out of state is sizable. Add to that an already thriving and robust medical market, and I think Pennsylvania is ready to go.
In 2025, I’m focused on D.C. because that’s where my business is, and I’m advocating for a stronger, more thriving cannabis industry here.
I’m also watching Georgia, particularly House Bill 227, the Putting Georgia’s Patients First Act, which aims to expand access to medical cannabis. If enacted, it could play a key role in the state’s shift toward broader legalization, and I’m eager to see how it unfolds.
Sara Brittany Somerset | Drug Policy Correspondent and Analyst | United Nations
I’m currently focusing on Utah. The state has a medical marijuana program, but according to local patients, the products are expensive, and the quality isn’t that good. I’d like to see Utah hire some master cultivators and/or pharmacologists with experience in the cultivation and R&D of cannabis products to improve the quality of its pharmaceutical cannabis for patients in need. There are a variety of legal ways to consume medical cannabis in Utah, including a capsule, a concentrated liquid, vaping and an aerosol, among others. However, smoking cannabis — even for medical use — is still not allowed. If you have a patient card and you smoke herb, that is an infraction that carries a fine of up to $100. Any further infractions incur the same charge as someone who does not possess a medical marijuana card, which is a Class A misdemeanor. I’d like to see better-quality products, flower and concentrates added to the MMJ consumption options.
We’re closely watching Pennsylvania. With growing bipartisan support, the state is inching closer to adult-use legalization. If lawmakers can craft a bill that balances equity, taxation and accessibility, Pennsylvania could become a major player in the East Coast market. Its proximity to New Jersey and New York also makes it a critical piece of the regional cannabis landscape.
While many are focused on states poised to legalize cannabis for the first time or transition from medical to adult-use in 2025, I’m most closely watching Texas. It’s not because they’re on the verge of legalization — quite the opposite. Texas is taking a decidedly prohibitionist stance toward the hemp industry, despite being a major hub for hemp manufacturing. This presents a critical challenge. While I’m always eager to see new markets emerge, my focus as a lobbyist is ensuring existing markets remain open. Prohibitionist sentiments can resurface even in established industries. Texas’ burgeoning hemp sector, which has thrived for several years, needs a strong political voice in Austin to counter the criticisms and restrictive legislation, like proposed ban bills coming from the lieutenant governor. Protecting this existing market is paramount.
Meg Sanders | CEO | Canna Provisions
Massachusetts, obviously first and foremost, but the Northeast is a very interesting market, and we definitely have opportunities in all of those states.
Rocco Del Priore | Co-founder | Sweed
Several states are poised for significant developments in cannabis legalization in 2025:
– Pennsylvania: Governor Josh Shapiro has proposed a plan to legalize recreational marijuana, aiming to make the state more competitive with neighboring regions that have already legalized it.
– South Carolina: A medical marijuana bill, the South Carolina Compassionate Care Act, has been refiled and is under consideration in the 2025 legislative session.
– Wisconsin: Governor Tony Evers has declared marijuana legalization a priority for the upcoming 2025 session, reflecting growing public support.
– Illinois: The state is in the process of implementing Metrc as its mandatory seed-to-sale tracking system in 2025, but the rollout has been slow and met with industry concerns. The transition will significantly impact operators and technology providers, particularly as compliance and inventory management requirements evolve. Other states may follow suit, making regulatory adaptation a key focus for businesses in the cannabis tech space.
Monitoring these states will provide insights into the evolving landscape of cannabis legalization and its potential economic and social impacts.
The state I’m paying the most attention to this year has to be Minnesota. After legalizing recreational cannabis back in 2023, it seems like things might be finally starting to take shape in 2025. With nearly 300 licenses set to be approved, it is certainly an opportunity for my company to work with both dispensary owners and budtenders in this emerging market.