Governor Meyer Vetoes Delaware Cannabis Zoning Bill, Delaying Market Rollout

28 August 2025

On August 22, 2025, Delaware Governor Matt Meyer vetoed Senate Bill 75, a closely watched piece of legislation aimed at loosening zoning restrictions for recreational cannabis businesses. The bill would have prevented counties from imposing overly restrictive buffer zones and conditional use permits, thereby enabling over 100 newly licensed operators to find suitable locations and open their doors.

Instead, the governor called for a revenue-sharing model to compensate counties for local costs like permitting and enforcement, offering this as a condition for relaxing zoning rules. Sussex County, one of the most restrictive jurisdictions under current policy, has indicated willingness to comply, if Meyer’s model is enacted.

However, many lawmakers and cannabis industry figures see the veto as a step backward. Sen. Trey Paradee accused Meyer of reneging on a prior deal and warned that the decision may stall or permanently derail dozens of cannabis small businesses. Rep. Ed Osienski questioned why marijuana should be treated differently from alcohol and tobacco, whose revenues flow to the state without similar local allocations.

While some medical dispensaries have already converted to recreational sales, they are vertically integrated and face no barriers in location due to legacy licensing. The broader market, by contrast, remains in limbo. Industry leaders fear that the lack of accessible retail space, combined with limited access to capital and ongoing federal illegality, will keep most businesses shuttered and the black market thriving.

As lawmakers consider a rare veto override, the path forward for Delaware's cannabis entrepreneurs, and its consumers, hangs in the balance.