Cannabis Licence Lottery Hurting The “little guy”
Countless cannabis entrepreneurs have been investigating the likelihood of getting into the cannabis retail sector of the industry, however, the likelihood of receiving one of the licenses is unfortunately slim for many applicants.
Applications for the cannabis license lottery – which will pass out 25 licenses throughout Ontario – are being acknowledged by the Alcohol and Gaming Commission of Ontario (AGCO). Cannabis entrepreneurs who have already leased prospective stores are frustrated with the Ontario government’s decision to put a cap the number of retail cannabis licenses.
Initially the province had no plans to limit the number of licences issued for retail stores, but reversed course last week.
The government changed their minds while in the middle of planning the implementation, and unfortunately, entrepreneurs are going to pay the price. “It’s not a great way to do business”.
The problem is, if you don’t have deep pockets like the large, corporate retail ventures, it could put you in a tough spot right now.
The possibility of large corporations buying out smaller operations due to the availability of licenses could squeeze “mom-and-pop” stores out of the competition.
If entrepreneurs have already signed a lease, the limited number of cannabis retail licenses now available means they could be at risk of losing everything.
The lottery was chosen today
Winners will be told by AGCO inside 24 hours of the lottery. Check in tomorrow for the cannabis retail lottery winners.