by Christopher Shea, Rhode Island Current
February 16, 2026
State cannabis regulators have yet to decide how they will handle the awarding of up to 20 cannabis retail licenses to applicants chosen by lottery as early as May.
The state had planned to award 24 licenses but reduced the number based on the distribution of applicants among the state’s six geographic zones. A total of 98 applications were submitted by the Rhode Island Cannabis Control Commission’s Dec. 29, 2025, deadline. One has since withdrawn, Rhode Island Cannabis Administrator Michelle Reddish told the commission at its monthly meeting Friday.
Commission staff are still vetting the qualifications of applicants before they are put into the final lottery that will award their retail licenses. A breakdown of the applicants available on the commission’s website shows over half — 56 — sought general retail licenses. Another 19 were worker cooperatives while the remaining 23 were for social equity applicants, or those adversely affected by the war on drugs.
The state’s regulations adopted last year set a maximum of four retailers per zone, with at least one license designated for a social equity applicant, and one for a worker-owned cooperative.
Nearly a third of all retail license applications — 31— were in Zone 6, which includes Pawtucket, East Providence, along with all of Bristol and Newport counties.
Zone 1, which covers Burrillville, Cumberland, Glocester, North Smithfield, and Smithfield, only saw two applications — both for social equity licenses.
During the commission’s meeting Friday, the panel raised the possibility of staggering the release of licenses.
“A lot of stakeholders have raised the issue that if all of the potential licenses come online at the same time, it could result in the price of the product dropping so precipitously that no one would profit by it,” said Commissioner Robert Jacquard.
Kevin Rouleau, chief operating officer for the Portsmouth-based Newport Cannabis Company, warned that a quick saturation of the state’s small market could lead to a “race to the bottom” as more established businesses like his try to outlast the new competition.
“This is going to hurt everyone, especially cultivators who will end up getting pennies on the dollar for their products,” Rouleau said.
Cultivators who attended the meeting didn’t feel that way.
“We’re totally fine moving forward with retail stores and are not worried about that outcome,” Nicholas Lacroix, a representative of the Rhode Island Growers Association, told the commission during the public comment period.
Still, Reddish worried that quick expansion could lead to problems that have happened in other states.
Michigan’s cannabis revenue declined in 2025 even as total sales reached record highs, driven down by falling prices. Oregon’s market has faced mounting pressure from large harvests and low wholesale prices. In Massachusetts, retailers describe a “race to the bottom” that has eliminated numerous businesses from its marketplace.
A lot of stakeholders have raised the issue that if all of the potential licenses come online at the same time, it could result in the price of the product dropping so precipitously that no one would profit by it.
– Rhode Island Cannabis Commissioner Robert Jacquard
“Based on these examples, it is necessary to discuss whether the commission should position itself to take proactive steps to support a stable and successful cannabis industry, prepare to respond in real time to market changes, and exercise the ability to adjust course if necessary,” she said.
But attorney Allan Fung, the former Cranston Mayor and former GOP congressional and gubernatorial candidate, appearing on behalf of several prospective applicants, said the market should ultimately be the entity that dictates price and competition.
“It’s unfair to everyone that’s invested time, money and attention to this process,” Fung told commissioners. “We ask there not be any delay.”
It’s already been a slow road for the state to establish its recreational cannabis market. Over a year passed before the three-member commission was impaneled June 2023. The commission needed to hire staff to draft proposals and conduct a review of rules adopted in other states. Rules governing Rhode Island’s retail cannabis were finally adopted in May 2025. Chairperson Kim Ahern stepped down last October to run for attorney general, and Gov. Dan McKee has yet to nominate a successor.
In the meantime, the state’s eight medical dispensaries have been allowed to sell recreational cannabis under hybrid licenses.
“The only people who stand to benefit from slow-rolling these dispensaries are the current dispensaries who have a monopoly on the cannabis market,” Spencer Blier, CEO and founder of cultivator Mammoth Inc. in Warwick, told the commission.
Because of how few applications were submitted for Zone 1, Reddish revealed during the commission’s Jan. 16 meeting that regulators would only issue a maximum of 20 licenses across the state.
“Depending on how the application process concludes, this number may decrease,” Reddish said Friday.
Beginning Jan. 1, the state’s Cannabis Office had 90 days to review applications and confirm they met eligibility requirements before entering them into a lottery, according to the timeline approved at the commission’s Oct. 20 meeting
Applicants still must obtain local approvals needed to qualify for the random drawing. Regulators had aimed to begin issuing licenses as early as May, though the regulations don’t specify how many would be awarded at one time.
No vote was taken by commissioners Friday. The panel tabled a decision on how many licenses to award at once to a future meeting.
The commission’s next scheduled meeting is 1 p.m. Friday, March 20.
Rhode Island Current is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Rhode Island Current maintains editorial independence. Contact Editor Janine L. Weisman for questions: info@rhodeislandcurrent.com.