Illinois Cannabis Dispensary Application 2023 | Social Equity License Lottery

Illinois Cannabis Dispensary License Application 2023

In order to get a dispensary in Illinois in 2023, you will need to apply on time and meet a few qualifications. You must be social equity as defined under new regulations. If you cannot meet the requirements of social equity you can not play the lottery to win one of 55 new Illinois conditional adult use dispensing organization licenses being awarded in 2023.  The IDFPR is accepting applications until March 3, 2023.

We will explain how to qualify for eligibility and provide help to those hopefuls that want to open a dispensary in IL.  Contact our offices for help getting into the lottery, or after you win.  You won’t really need a lawyer or consultant until after you win, but we should get started planning for that now.


How to qualify for the Illinois Social Equity Cannabis Dispensary License Lottery.

If you meet all of the qualifications, you can apply for a dispensary license through the Illinois Department of Financial and Professional Regulation (IDFPR). The application process is not straightforward, and the department will provide all of the information you need to apply.

The IDFPR said:

This guide provides examples of the types of documents that are acceptable for top
participants’ individual majority owners to prove their social equity status for Criteria A
and Criteria B, as required in 68 IAC 1291.410(e).

How to open an Illinois Cannabis Dispensary in 2023

To open a cannabis dispensary and sell cannabis products in 2023, you must be extremely special.  The people eligible to open a cannabis business in Chicago IL will not be able to afford to do so, but they will be eligible to win a conditional license, or sell medical marijuana.

After they win, they will need to partner with new business owners to adequately capitalize their business.  The regulators completely changed the definition of social equity from the statue to purportedly reduce the barriers to entry. but what will probably happen will see 55 people from poverty being placed in a postilion to be exploited. Only they are granted an asset that takes millions of dollars to operate in a very highly regulated and quasi-legal industry, but they don’t have the money.


The IDFPR Provides  requirements for eligibility:

In order to be eligible for a conditional license in the above scenario, the winner must prove they are a social equity applicant to the Department for each individual making up 51% ownership:

  1. The individual’s home address is within the eligible census tract in Criteria A;
  2. The individual has resided at the home address for a total of 5 of the past 10 years
    and has appropriate documentation and proof (acceptable documents listed below); and
  3. The individual qualifies under one of Criteria B’s requirements.

The IDFPR again stated their policy on having both the long time & current residency in a DIA plus be a victim of a qualifying arrest, its family member, or a gun violence victim.

Remember, if a top participant has multiple individuals who make up the 51% ownership or control of the entity, the top participant needs to prove the above three bullet points for each individual.

The IDFPR completely expanded the scope of social equity to mandate current residence in a DIA, and a qualifying arrest or conviction, and long time residency (5 of past 10 years) in a census tract for poverty, food stamps, or a victim of a gun crime.  The original definition had none of those elements.

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Eligibility under Criteria 1

  1.  Criteria A(i): Poverty Level Census Tract 7
  2. Criteria A(ii): SNAP Census Tract  Criteria A(iii):
  3. Food Desert Census Tract.
  4. Criteria A(iv): Medicaid, Supplemental Security Income, Social Security Disability, and/or Subsidized Housing  Criteria
  5. A(v): High School Graduation Tract

The IDFPR has read into the phase “who has resided for at least 5 of the preceding 10 years” to mean current residency as well as long time residency.  This means that if you want to win an Illinois Cannabis Dispensary license in 2023, you must only live in very specific areas of the state.

Eligibility under Criteria 2

To qualify for eligibility for Criteria 2, you must be an individual who has been arrested for, convicted of, or adjudicated delinquent for any offense, or substantially similar offense, of Illinois, federal or other state law for: •

  • possession of not more than 500 grams of cannabis; or • manufacture, delivery, or possession with intent to deliver, or manufacture of cannabis up to 30 grams;
  • An individual who has a family member who has been arrested for, convicted of, or adjudicated delinquent for any offense, or substantially similar offense, of Illinois, federal, or other state law for the same cannabis crimes before the law went into effect on May 26, 2019.
  • An individual who has been a victim of firearm injury, as those terms are defined in this Part. This must be evidenced by either a police report or medical record.

What happens after you win the Illinois dispensary lottery in 2023

Once your application wins the lottery and you prove social equity eligibility, you will need to secure a location for your dispensary and undergo a rigorous inspection process. The department will also require you to submit detailed plans for your dispensary, so make sure you have everything planned out ahead of time.

Once your dispensary is open, you will need to follow all state regulations regarding cannabis sales. You must also comply with local zoning regulations, so make sure you know what those are before starting your business.

Disproportionately impacted areas in Illinois Redefined

In Illinois, those who have been disproportionately impacted by cannabis prohibition are given a monopoly when applying for a dispensary license. These criteria include individuals within an eligible census tracts. Census tracts can be in all 50 states. Eligible applicants must who have resided at their home address for 5 of the past 10 years with appropriate documentation and proof; and also must qualify under one of Criteria B’s requirements.

Applicants must also provide satisfactory evidence that they meet all Illinois licensing requirements, including experience in the Illinois cannabis industry as well as specific financial qualifications (i.e., documented financial resources).

How much does it cost to apply for a dispensary license in Illinois

Unlike previous applications for medical cannabis dispensaries in the state that required detailed business plans and descriptions of the types of cannabis you intended to sell, the current dispensary application is very simple and only costs $250 dollars.  You can only apply once.  However, if you win, a compliant Illinois cannabis dispensary may cost approximately $1.5 million dollars to open its doors. It may cost even more if the real estate is in or around Chicago.


The first step to obtaining an Illinois dispensary license is to register for an account on IDFPR’s website and submit an application. Applicants will then be required to submit supporting documents, such as proof of Illinois residency and financial information, as part of the licensing process.

Once you have submitted all of your necessary documents and passed both background checks, IDFPR will send you a conditional license. This does not guarantee final approval; however, it does allow applicants to proceed with the next step in the Illinois dispensary license process.

Finally, applicants must complete the Illinois Dispensary License Final Application and wait for a decision from the Illinois Department of Financial & Professional Regulation. If approved, a successful applicant can begin their journey as an Illinois cannabis dispensary owner and start selling recreational marijuana legally to adults 21 years or older.

By understanding Illinois social equity criteria, navigating the Illinois dispensary license application process, and providing all necessary documentation to the Illinois Department of Financial & Professional Regulation, successful applicants can reap the benefits of owning an Illinois cannabis dispensary. Good luck!

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Thomas Howard

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.
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Picture of Thomas Howard

Thomas Howard

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.

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