Delaware’s Recreational Marijuana Market Delayed Over FBI Fingerprinting Dispute

19 March 2025

The rollout of Delaware’s recreational cannabis market, initially set to begin this year, has been delayed due to complications with federal approval of a fingerprinting system required for background checks on industry applicants. While the Delaware Office of the Marijuana Commissioner (OMC) previously stated that approval from the FBI was still pending, it was later revealed that the agency had rejected the state's initial application (which was written based on House Bill 334 statute) in December 2024. The FBI cited noncompliance with federal law but did not specify the reasons for its decision.

In response, Delaware officials have submitted a revised application and are in discussions with the FBI to resolve the issue. Until the matter is resolved, the state cannot proceed with licensing new cannabis businesses, leaving operators who were selected through a lottery process in limbo. The delay raises concerns about business planning, financial investments, and the broader impact on Delaware’s cannabis market.

Further Details and Fact Analysis:

Key Issues Causing the Delay:

• FBI Rejection of Fingerprinting System: The federal agency rejected Delaware’s fingerprinting authorization for background checks, citing noncompliance with federal law.
• Reapplication Process Underway: The Delaware Office of the Marijuana Commissioner has resubmitted an application and is awaiting reconsideration.
• Impact on Licensing: 125 businesses were selected in a state lottery to receive cannabis licenses, but they cannot proceed without conditional approval, which requires completed background checks.

Impact on Stakeholders:

• Local Market and Industry: The delay has disrupted business plans for operators expecting to launch cannabis cultivation, manufacturing, and retail sales in 2025. Many face financial uncertainty due to the lack of clarity on when the industry will move forward.
• Cannabis and THC Users: Consumers who anticipated legal cannabis sales this year may have to wait longer, potentially pushing demand toward the illicit market.
• Medical Cannabis Patients: The issue does not affect medical marijuana patients directly, but delays in setting up the recreational market could shift regulatory focus away from medical program improvements.
• State Revenue and Economic Growth: A stalled rollout means a delay in tax revenue from recreational cannabis sales, which the state had planned to use for public programs.

State officials have noted that Delaware’s medical cannabis program previously received similar fingerprinting approval from the FBI. They argue that the recreational program should be granted the same authorization, emphasizing their commitment to compliance with federal regulations.

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