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District of cannabis: Is D.C.’s new weed economy sustainable?

OG Article By Nayion Perkins


October 14 2025






D.C.’s cannabis market is booming, but new regulations and limited supply raise questions about sustainability.



Rapid Expansion

  • Growth: Over 50 new dispensaries opened across D.C.’s eight wards in the past year.

  • History: Two types of shops existed: medical dispensaries (requiring prescriptions) and gifting shops (operating under Initiative 71).

  • Initiative 71: Passed in 2014, allowed gifting but not selling cannabis. Gifting shops sold items like stickers, “gifting” cannabis as a workaround.

“After two conversations, I made up my mind. This is what I gotta do.” — Brittany Okafor, Owner, No Kids Allowed


Regulatory Shift

  • 2023 Medical Cannabis Amendment Act: Expanded eligibility for medical dispensary licenses and removed caps on dispensary numbers.

  • Impact: Gifting shops had until March 31, 2025, to convert to medical dispensaries or close.

  • Enforcement: ABCA and Metro Police cracked down, closing 50 illegal shops, including Orbit DC, by April 24, 2025.

  • Seizures:

    • 530 pounds of cannabis

    • 300 pounds of edibles

    • 80 pounds of mushrooms

    • $142,635 in cash

    • 9 firearms

“The goal is a legal medical cannabis market on a level playing field.” — Fred Moosally, Director, ABCA


Challenges for Businesses

  • Limited Suppliers: Only 14 licensed cultivators supply D.C.’s 60+ dispensaries, reducing product variety.

  • Customer Privacy: Mandatory medical cannabis cards deter customers, especially in Capitol Hill, where security clearances are common.

  • Competition: Licensed dispensaries struggle against unregulated shops’ lower costs.

“Customers prefer their privacy. Some want buying cannabis to be a secret.” — Brittany Okafor


Market Dynamics

  • Sales Surge: Legal cannabis sales hit $5,447,082 in August 2025, up from $2,804,301 in August 2024.

  • Concerns: Revenue concentrates in fewer dispensaries, threatening smaller businesses.

  • Sustainability: Limited cultivators and strict regulations may hinder long-term viability.

“I know people who are six months away from closing.” — Pam Wexler, Cannabis Attorney


Voices of the Industry

  • Brittany Okafor, No Kids Allowed: Converted to a licensed dispensary but faces supply and customer privacy challenges.

  • James Kahn, Takoma Wellness Center: Sees value in regulated products but struggles with competition from unlicensed shops.

  • Pam Wexler, Attorney: Warns D.C.’s inexperience managing a cannabis market could hurt businesses.

“We know customers benefit from safe, tested products. That need isn’t going anywhere.” — James Kahn


Looking Ahead

  • Optimism: Industry players remain hopeful despite challenges.

  • Equity Concerns: D.C. must address supply and fairness to sustain an equitable market.

“D.C. can pat itself on the back, but we’ve got to be harder on ourselves to make this market equitable.” — Brittany Okafor

 
 
 

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