First-Ever Arkansas Medical Marijuana Dispensary License Revocation

3 May 2024

The Arkansas Alcoholic Beverage Control (ABC) Division has pulled the medical cannabis license of a medical cannabis dispensary in Hot Springs, marking the first such action since the state launched its medical marijuana program in 2019. The decision, announced on May 2, 2024, followed repeated violations, including the sale of over 1,800 expired cannabis products, unsanitary conditions, and inventory discrepancies. Despite the revocation, the dispensary will remain operational during the appeals process.

Investigations in 2023 and 2024 revealed ongoing non-compliance with state regulations, even after previous warnings and fines. This case underscores the importance of adhering to industry standards within Arkansas’ $1.1 billion medical cannabis market, emphasizing patient safety and operational integrity.

The potential closure of the dispensary may affect its 26,000 registered patients, who could face challenges in accessing their medication. Additionally, the decision signals stricter enforcement of regulations, which may lead to increased compliance efforts and costs for other operators.

This development highlights the state’s commitment to upholding safety and regulatory standards in the medical cannabis industry, setting a significant precedent for the future of Arkansas’ program.