Arizona Cannabis Update

Arizona Cannabis Update

Shelby Knight
APRIL 23RD, 2022

The Arizona Department of Health Services awarded 26 coveted social equity cannabis business permits during a long-awaited license lottery.

The State of Arizona began issuing recreational marijuana licenses in January of 2021. Arizona is offering only 169 vertically integrated marijuana business permits for the entire state.

The Arizona Department of Revenue projected $1.2B in cannabis sales for 2021, and sales actually reached $1.9B

Medical and adult-use marijuana is legal in Arizona. In 2010, Arizona passed medical marijuana through Prop 203. On November 3rd, 2020, Arizona voters pass Proposition 207, also known as the “Smart and Safe Arizona Act”, to legalize adult-use marijuana in the state. State licensed businesses are allowed to cultivate, manufacture and dispense marijuana.


With an Arizona Recreational Marijuana Business License a marijuana establishment will be allowed to operate all of the following:

  • A single retail location at which the licensee may sell marijuana and marijuana products to consumers, cultivate marijuana, and manufacture marijuana products.
  • A single off-site cultivation location at which the licensee may cultivate marijuana, process marijuana, and manufacture marijuana products, but from which marijuana and marijuana products may not be transferred or sold to consumers.
  • A single off-site location at which the licensee may manufacture marijuana products, and package and store marijuana and marijuana products, but from which marijuana and marijuana products may not be transferred or sold to consumers.

The state will issue marijuana establishment licenses based on the below parameters:

  • The state may issue a marijuana establishment license to not more than two (2) marijuana establishments per county that contain no current medical marijuana dispensaries, or one (1) marijuana establishment license per county that contains only one (1) medical marijuana dispensary.



For more information on Arizona cannabis programs, including details on licenses- visit our State Page!

The Cannabis Business Advisors has successfully secured licenses for clients in over 20 markets across the United States. Call our office at (602)-290-9424 or email ( to get started.




Better growth and a clear plan forward is what your business needs. Reach out to us to book a consultation or get your action plan