Kentucky Officials Hold Lottery To Award State’s First Medical Marijuana Business Licenses

“People will be buying product that is grown here, that is processed here, that is tested here, that would otherwise be in other states.”

By Sarah Ladd, Kentucky Lantern

Kentucky awarded its first 26 medical cannabis licenses through a lottery held Monday at the Kentucky Lottery Corporation in Louisville.

The first round of licenses, drawn by state lottery staff, went to 16 cultivators and 10 processors.

Monday’s winners will get an email within 24 hours and must pay a licensing fee within 15 days. Failure to do so will result in licensing forfeiting, said Sam Flynn, the executive director of the Office of Medical Cannabis. Winners will have to renew after a year.

Gov. Andy Beshear (D) called the Monday drawing a “big step forward.”

“Medical cannabis can help people, especially with really serious conditions,” Beshear said after the drawing. “People will be buying product that is grown here, that is processed here, that is tested here, that would otherwise be in other states.”

Flynn said the program is focused on equitable access for Kentuckians who qualify for medical cannabis.

“We want to make sure that these folks have access points throughout the state,” he said. “We want to make sure they have the safest possible medical products and the best possible care available.”

In a statement, Kentucky Lottery President and CEO Mary Harville said, “over the 35 years of its existence, the Lottery has been known for conducting drawings for a plethora of its draw-based games, first with machines and balls, and now, with state-of-the-art random number generators.”

“These drawings are conducted with the highest level of integrity and are in accordance with industry established procedures,” said Harville. “We are happy to be able to bring this level of integrity to the cannabis drawings.”

A bipartisan effort

In 2023, the legislature legalized medical marijuana for Kentuckians suffering from chronic illnesses.

Then, the bipartisan House Bill 829 that became law during this year’s legislative session moved up the medical cannabis licensing timeline from January 2025 to July 1, 2024.

During the application period, July 1–August 31, the state received 4,998 applications for medical cannabis business licenses, including 918 cultivator and processor applications, according to Beshear’s office.

Patients who qualify for medical cannabis—with a history of post traumatic stress disorder (PTSD), cancer or other approved medical conditions—won’t be able to apply for cannabis cards until January 1.

Flynn said providers who write certifications for those cards will prescribe types and amounts like any medication.

“We want to make sure that this is safe, that it’s driven by health care and health care decisions,” Flynn said.

“Help is on the way,” Beshear said. “There is a new day coming in Kentucky…where you’re going to be able to get safe medical cannabis to help you with your conditions.”

A lottery date for the dispensers will be announced on Thursday, Beshear said.