Missouri has quickly evolved into one of the fastest-growing cannabis markets in the Midwest. Since legalizing medical marijuana in 2018 and expanding to adult-use cannabis in December 2022, the state has created massive opportunities for entrepreneurs.
With more than 200 dispensaries now operating and new microbusiness licenses opening in 2025, now is the perfect time to learn how to open a dispensary in Missouri.
This guide will walk you through the process—covering Missouri’s legalization history, license types, eligibility requirements, costs, compliance rules, and expert tips to maximize your chances of approval.
The Road to Cannabis Legalization in Missouri
- 2018: Missouri voters approved Amendment 2, legalizing medical marijuana.
- 2022: Recreational cannabis was legalized for adults 21+ in December.
- 2023: Adult-use sales officially launched in February, generating millions in state revenue.
Oversight falls under the Missouri Department of Health and Senior Services (DHSS), which uses cannabis tax revenue to support veterans, expunge records, and fund public services.
The expansion of legalization has created a booming market—making it an ideal time to pursue a dispensary license.
Missouri Cannabis Licensing Lottery
One of the most important steps in learning how to open a dispensary in Missouri is understanding the state’s lottery-based licensing system. Instead of a first-come, first-served approach, Missouri uses random drawings to ensure fairness.
- Applicants submit their paperwork during open windows.
- Only qualified individuals meeting Social Equity criteria are considered for microbusiness licenses.
- Existing license holders cannot apply for additional microbusiness permits.
📌 Missouri plans to issue 48 new microbusiness licenses in 2025, giving new entrepreneurs an excellent opportunity to enter the market.
Types of Cannabis Licenses in Missouri
Missouri offers two primary categories of licenses:
1. Microbusiness License
Designed for small-scale businesses, particularly for individuals who qualify under social equity rules (e.g., prior cannabis conviction, residency in disadvantaged areas, or service-disabled veterans).
2. Comprehensive License
Covers larger operations, including:
- Dispensary License – Retail sales to patients and consumers.
- Cultivation License – Grow operations.
- Manufacturing License – Processing cannabis products.
- Testing Facilities & Transportation Licenses – Lab and distribution operations.
Applicants must provide proof of premises, a business plan, financial stability, and compliance with DHSS regulations.
Eligibility Criteria for Missouri Cannabis Licenses
To qualify for the lottery system, applicants must meet at least one of the following:
- Net worth under $250,000
- Service-connected disability status
- Arrest/conviction (self or family member) for a non-violent marijuana offense
- Residency in a Missouri “disadvantaged” zip code
Meeting these requirements ensures a fair chance at entering the cannabis industry.
How Much Does It Cost to Open a Dispensary in Missouri?
Costs vary depending on location, facility size, and license type. Here’s a breakdown of the state fees:
| License Type | Application Fee | Renewal Fee | Annual Fee |
|---|---|---|---|
| Comprehensive Dispensary | $7,000 | $7,000 | $10,000 |
| Microbusiness Dispensary | $1,500 | $1,500 | $1,500 |
| Cultivation (Comprehensive) | $12,000 | $12,000 | $25,000 |
| Testing Facility | $5,000 | $5,000 | $5,000 |
| Transportation | $5,000 | $5,000 | $5,000 |
💡 Startup Estimate: Opening a dispensary in Missouri typically costs between $85,000–$150,000, including real estate, security, inventory, staffing, and licensing.
Required Documentation
Applicants must submit:
- Completed application forms
- Proof of identity (ID or driver’s license)
- Floor plans and blueprints
- Detailed security protocols
- Business plan with financial strategy
Application Timeline & Selection
- Second Round Closed: April 15–29, 2024
- Next Round: Expected in 2025
Applications must be submitted online through the DHSS portal, with fees paid upfront. The final decision is based on lottery selection.
Tips for a Successful Application
- Develop a Strong Business Plan – Highlight compliance, patient/community benefits, and financial strategy.
- Implement Security & Compliance Systems – Include seed-to-sale tracking, inventory audits, and strong security.
- Build a Qualified Team – Experienced professionals with cannabis or regulatory knowledge improve your odds.
- Know Local Regulations – Dispensaries must be 300 ft. from schools and 1,000 ft. from churches/daycares.
- Plan for Taxes – Adult-use cannabis is taxed at 6%, medical cannabis at 4%, plus possible local taxes.
Conclusion
Learning how to open a dispensary in Missouri is your gateway to joining a rapidly growing billion-dollar industry.
By meeting eligibility requirements, preparing strong documentation, and applying during the 2025 lottery, you can secure a license and establish a successful cannabis business.
Stay informed, plan strategically, and you’ll be well-positioned to thrive in Missouri’s cannabis market.
FAQs: How to Open a Dispensary in Missouri
Q1: Can anyone open a dispensary in Missouri?
Yes—if you’re at least 21, a resident for one year, and meet the eligibility criteria.
Q2: What are the types of cannabis licenses available?
Dispensary, cultivation, manufacturing, testing, transportation, and microbusiness licenses.
Q3: How much does it cost to start a dispensary?
Expect $85,000–$150,000 in startup costs, including fees, property, staff, and inventory.
Q4: How do I get a Budtender license?
Submit proof of employment with a licensed facility, ID, digital photo, and $75 fee.
Q5: When is the next cannabis license lottery in Missouri?
The third round of microbusiness applications is expected in 2025.