Ohio Monthly Puff: Ohio Hits $1B Cannabis Sales, SB 56 Compliance Looms

📊 OHIO CANNABIS RETAIL – $1 BILLION IN 2025 SALES VALIDATES MARKET SCALE

The Setup:
Ohio Department of Commerce data confirmed more than $1 billion in legal marijuana sales during 2025, with more than $35 million in adult-use excise taxes collected since August 2024. Tax distributions to nearly 100 host communities began in January 2026, reinforcing local political support for continued retail access.

The Impact:
The $1 billion baseline validates durable consumer demand through Ohio’s first full year of adult-use sales and strengthens retailer arguments against restrictive policy changes. Municipal tax distributions create direct fiscal incentives for local governments to protect existing dispensaries and approve new locations. Real estate confidence remains strong, evidenced by a $28.5 million Ohio cannabis cultivation facility sale in February.

The Opportunity:
Retailers expanding in Ohio can leverage the $1 billion sales figure and tax distribution data in community presentations and zoning hearings. Cities receiving tax revenue are less likely to impose new moratoria or reverse opt-in decisions. The proven economic impact gives operators negotiating leverage in lease discussions and financing conversations.

Strategic Angle:
Pull tax distribution data for target cities from Ohio Department of Commerce reports before Q1 2026 zoning hearings. Show council members exactly how much revenue their neighbors are collecting to counter any moratorium proposals.

🏛️ CINCINNATI – $2.5 MILLION CANNABIS TAX REVENUE PLAN ADVANCES

The Setup:
Cincinnati Council Member Mark Jeffreys introduced the “Harm to Hope” plan on February 12, dedicating $2.5 million in annual marijuana tax revenue to expungement, lead paint abatement, and youth development programs. Two ordinances are expected before full City Council in coming weeks to establish a restricted fund and create a community advisory board.

The Impact:
Cincinnati’s structured approach to cannabis revenue creates a social equity framework that will shape community expectations for all retailers operating in city limits. The advisory board governance model signals future operator engagement requirements and potential conditions tied to local licensing or zoning approvals. Tax collection data confirms active cannabis retail sales within Cincinnati are generating predictable municipal revenue streams.

The Opportunity:
Retailers in Cincinnati should prepare for community benefits discussions as part of any expansion or new location strategy. The advisory board structure offers a direct channel for proactive engagement before regulations tighten. Operators who align early with Cincinnati’s equity priorities gain positioning advantages in future licensing rounds or zoning decisions.

Strategic Angle:
Connect with Cincinnati NAACP and Urban League contacts before the advisory board is seated. Operators who contribute to community programs ahead of formal requirements build political capital that protects expansion plans.

🏪 AKRON – TWO DUAL-USE DISPENSARIES APPROVED IN SPLIT VOTES

The Setup:
Akron City Council approved conditional use permits for two dual-use marijuana dispensaries on February 2. OPC Cultivation received approval for 1140 W. Portage Trail (7-5 vote, Ordinance 21-2026), while Tango Ventures won approval for 1060 W. Market Street (11-2 vote, Ordinance 15-2026). Klutch Cannabis chose to become landlord at its approved Frank Boulevard site, keeping Pink Petals Florist’s lease after public criticism.

The Impact:
Akron’s split votes reveal ongoing political friction around dispensary siting despite statewide market maturity. The narrow 7-5 approval for OPC Cultivation shows retailers cannot assume rubber-stamp approvals even in jurisdictions with established frameworks. Klutch’s landlord strategy demonstrates how operators are adapting to community pushback by preserving existing tenants rather than displacing them.

The Opportunity:
Akron remains open to dual-use dispensaries but requires careful site selection and neighbor engagement. Retailers pursuing Akron locations should identify sites with existing vacancies or compatible co-tenants. The Klutch landlord model offers a playbook for converting opposition into approval by showing economic benefit to existing businesses.

Strategic Angle:
For Akron applications, present a tenant retention plan upfront. Council members who voted against OPC Cultivation cited community impact concerns that the landlord approach directly addresses.

⚠️ STATEWIDE – SB 56 COMPLIANCE DEADLINE MARCH 20 BRINGS OPERATIONAL CHANGES

The Setup:
Senate Bill 56 takes effect March 20, 2026, imposing a 35% THC cap on flower, public smoking prohibitions, possession limited to original packaging, criminalization of interstate marijuana transport, and trunk storage requirements for drivers. A certified referendum petition could place SB 56 repeal on the November 2026 ballot, creating compliance-then-potential-repeal uncertainty.

The Impact:
Retailers face immediate portfolio adjustments to comply with the 35% THC flower cap and must educate customers on new packaging, transport, and public use rules. The referendum timeline creates a multi-month window where operators invest in compliance systems that may be repealed before year-end. Multi-state operators face heightened scrutiny after Ohio Attorney General filed antitrust suit against nine MSOs alleging price-fixing.

The Opportunity:
Operators who implement SB 56 compliance early and communicate changes clearly to customers avoid March 20 bottlenecks and enforcement risk. Retailers can differentiate by offering compliance education materials and trunk storage bags as customer service tools. The referendum petition creates an opportunity to engage customers in political advocacy while demonstrating regulatory adaptability to investors.

Strategic Angle:
Launch SB 56 customer education campaigns by March 1. Retailers who proactively explain changes build trust that competitors scrambling at the deadline cannot match.

🏛️ CIRCLEVILLE – MORATORIUM EXTENDED TO MAY 6, DECISION TIMELINE UNCLEAR

The Setup:
Circleville City Council passed a 90-day moratorium extension on January 20, pushing the expiration date from February 6 to May 6, 2026. Council President Barry Keller stated the extension allows time to “gather more information, meet with appropriate parties, and hopefully have some resolution by the end of the 90 days.” The moratorium covers retail cultivation, processing, and dispensing of adult-use and medical marijuana.

The Impact:
Circleville remains closed to Ohio cannabis retail through at least May 6, blocking any site control or license pursuit during the extension period. The timing overlaps with SB 56 implementation and potential referendum developments, which may influence Circleville’s final decision. The “hopefully have some resolution” language suggests no guaranteed outcome even after the May 6 deadline.

The Opportunity:
Retailers interested in Circleville should monitor City Council agendas starting in April for signs of opt-in movement or permanent prohibition ordinances. Pickaway County’s proximity to Columbus creates potential demand if Circleville opts in. Early relationship-building with council members during the extension period positions operators for first-mover advantage if the moratorium lifts.

Strategic Angle:
Reach out to Circleville planning staff in March to understand what “appropriate parties” are being consulted. Operators who participate in the information-gathering process shape the framework before it’s finalized.

💼 THIS MONTH’S OHIO CANNABIS DEALS

10B Retail License

Located in Cleveland. Ask price $3M. Current location can be leased at $15k a month or license can be moved to another location at no cost to buyer to break lease.

Additional 10B Retail License

No real estate associated. Available at $2M with no seller carry, if terms are being requested asking price will be higher.

Two operational dispensaries in OH

Located in suburbs just outside of Columbus. Ask price is $10m per license, seller carry is available with sizable down payment. Projected for $20M revenue first year.

Northeast Ohio – Established Retail Store

• $6M revenue (trailing 12 months)
• 15% EBITDA
• Lease: $8,500/month
• Asking: $4,250,000

Interested in learning more about these opportunities? Contact us directly.

The Bottom Line

Ohio cannabis retail enters March 2026 with $1 billion in proven demand, $35 million in tax distributions strengthening municipal support, and immediate SB 56 compliance requirements. Cincinnati’s $2.5 million community fund sets a social equity precedent, Akron’s split votes show siting friction persists, and Circleville’s extended moratorium delays any southern Ohio expansion through May. Retailers who implement March 20 compliance early, engage with Cincinnati’s advisory board structure, and monitor Circleville’s spring decision timeline position for continued growth despite regulatory uncertainty.