Candice Peters spent over two years building Coastal Cure Cannabis in Delmar, Maryland, which opened June 1 — and her timeline was actually quicker than most peers holding the state's "social equity" dispensary licenses.
Maryland has issued 83 such licenses since 2023, but only 17 businesses are currently operating — double the number open at the start of the year. License holders cite zoning restrictions, scarce investors, reluctant landlords, and lingering stigma as ongoing obstacles.
Peters, a physician, first tried for a license when Maryland legalized medical marijuana over a decade ago but was unsuccessful. "There were no minorities, or very few minorities that got these licenses," she said. "They were supposed to be a very blind application process. That turned out not to be true, which is how we end up here."
The 2023 Cannabis Reform Act legalized recreational sales, established the Maryland Cannabis Administration and Office of Social Equity, and created equity licenses for dispensaries, growers and processors from communities — or school districts — disproportionately harmed by drug war enforcement.
"Multimillions of dollars have been made, and no one who was affected by it, decades ago, was able to really profit from that," Peters said.
Malcolm Gillian, founder of the Maryland Coalition for Cannabis Equity, said his group helps equity licensees secure financing and compete once operational. He said the state has built "a very healthy, very robust, legal marketplace" compared to states still battling illegal sales.
Cannabis sales have risen annually since 2023, reaching $3.46 billion total and hitting a monthly record of $105 million (medical and recreational combined) in April, per Cannabis Administration data. The agency operates 99 non-equity dispensaries statewide, mostly converted medical operations.
Peters noted regulators worked to prevent multistate operators from absorbing equity licenses: "This round of licenses was critical to, not even evening the playing field, but at least allowing us to have a seat at the table."
A rule requiring 65% ownership by qualified applicants complicates fundraising, said Frank Hayes of Crabtree Cannabis in Kensington, who sits on the Maryland Dispensary Association board. Hayes and co-owner Felicia Covel Rami faced a construction halt after nearby churches complained their renovation violated the 500-foot worship-space buffer — though the churches themselves lacked proper permits. After a lawsuit, the halt was lifted and Crabtree opened April 14.
In April, Acting Attorney General Todd Blanche reclassified medical cannabis from Schedule I to Schedule III, grouping it with pain medication and ketamine rather than heroin and LSD. Hayes and Peters welcomed this but noted confusion remains since the DEA still treats recreational cannabis as illegal. "Some licensees have chosen to register and apply with the DEA, others have chosen not to, but I don't think either camp has confidence [nor] clarity on the path forward," Hayes said.
Hayes and Gillian, both former California cannabis industry workers, said Maryland's 12% recreational sales tax has helped prevent the illegal market that high taxes fueled in California. "There is no longer like a local weed guy [in Maryland], everyone just goes to the dispensary," Gillian said.
Peters said her business aims to hire formerly incarcerated people and residents of underserved communities, adding: "I think as we destigmatize this, we're only going to get more people that are using cannabis in a safe way."