Ontario could soon be flooded with new cannabis stores under updated regulations
You might start to notice more and more cannabis stores popping up around Ontario soon, as updated regulations in 2024 double the previous cannabis store cap per licensed retailer.
The changes officially took effect on January 1, 2024, and amended regulation under the Cannabis Licence Act 2018 to increase the limit of cannabis retail store authorizations from 75 to 150 per licensed retail operator and their affiliates.
According to the Ontario government, the increase is intended to help further support a “healthy and competitive legal cannabis market” throughout the province.
Through the amended regulation, cannabis retailers can now operate up to 150 stores in Ontario, following a previous cap of 75 that was implemented in 2021.
Many cannabis retailers operating in the province, including Alberta-based High Tide Inc., have expressed their support for Ontario’s growing market.
“We welcome Ontario’s move today to make good on its previously stated intent to double the provincial store cap to 150. The increase comes as some operators who have a franchise model are already approaching, or have exceeded, 75 stores in the province,” said Raj Grover, founder and CEO of High Tide.
“The move will have a positive impact on Ontario’s cannabis retail market as it brings the province closer to Alberta, Saskatchewan and Manitoba, which don’t have a store cap and have demonstrated success at illicit market capture,” Grover said.
“This change not only levels the retail playing field in Ontario but also creates a significant growth opportunity for High Tide and others that will help Ontario’s legal cannabis industry better compete with an entrenched illicit market, creating new jobs for Ontarians and increasing tax revenue for the province.”
As of June 2023, Ontario is home to the most cannabis stores out of any Canadian province, with approximately 1,600 locations in operation.
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