Ontario to carry lottery for 42 new leisure cannabis shops


Ontario’s plan to belatedly add extra cannabis tales to its underwhelming roster of 23 authorizations is an indication the federal government is listening to business and shopper suggestions that the market can maintain – and requires – extra shops, in response to specialists.

The Alcohol and Gaming Fee of Ontario will maintain a lottery on Aug. 20 for 42 new shops, the province introduced Wednesday.

Entrepreneurs who want to add their names to the lottery are required to fulfill prequalification necessities, together with:

  • A financial institution letter confirming entry to CA$250,000 ($191,180) in capital.
  • Demonstrating they’ve secured appropriate retail area that may very well be used for it.

Unbiased from the lottery, eight leisure marijuana retail retailer permits shall be out there for First Nations reserves. Band Council approval shall be required and people shall be issued on a first-come, first-served foundation.

Ontario’s leisure cannabis gross sales had been puttering alongside till the primary bodily shops opened in April, an indication that customers have little urge for food for making authorized purchases on the government-run Ontario Hashish Retailer web site.

Gross sales greater than doubled that month on the again of a small variety of shops.

Ontario’s 75-store restrict contrasts with Alberta’s method, which has a plan to get to greater than 200 cannabis shops within the coming months.

Omar Khan, vice chairman of public affairs at Toronto-based consultancy Hill+Knowlton Methods, mentioned Ontario must aggressively transfer towards an open licensing system as quickly because the nationwide provide scenario permits.

“This can nonetheless imply that the overall cannabis retail footprint in Canada’s largest province will nonetheless be lower than 10% that of beverage alcohol and round 15% of what we see in Colorado, a state with a inhabitants which is lower than half of Ontario’s,” he mentioned.

“If the federal government needs to get rid of the illicit market, they might want to make sure that shoppers are capable of entry authorized product choices conveniently and in a well timed method.”

The 42 shops shall be allotted as follows:

  • East Area: 7 shops
  • Higher Toronto Space: 6 shops
  • Toronto: 13 shops
  • West area: 11 shops
  • North area: One retailer in every of Kenora, North Bay, Sault Ste. Marie, Thunder Bay and Timmins.

Alanna Sokic, a advisor at Toronto-based International Public Affairs, expects the rollout of the 50 new shops – together with the eight First Nations shops – to go extra easily than the preliminary batch of shops, partly due to the inclusion of the prequalification necessities.

“With the approaching into power of latest product kinds in October 2019 and their subsequent availability to shoppers in December of this 12 months, Ontario Hashish Retailer suppliers who intend to fabricate these merchandise will now have entry to an elevated variety of channels to get their merchandise to shoppers,” she mentioned.

Matt Lamers may be reached at [email protected]


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