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ONTARIO TO SCRAP RETAIL LOTTERY, APPROVE UNLIMITED REC STORES

Ontario’s ministry of the attorney general announced it will scrap the REC retail lottery system and, as of January 6, and begin accepting retail license applications for unlimited potential operators across the province.
Globe and Mail

Ontario will allow each producer to open a single farm-gate store at one of its facilities, though producers may need to sell the product first to the Ontario Cannabis Store, and then buy it back from them.
Twitter—Matthew Columbro

Though the province led the nation in total sales during the first year of legalization, the $216.8M in sales pales by comparison to the $325M in business and $50M in taxes the Cannalysts estimate Ontario lost by not following Alberta’s market-demand model earlier.
CTV News

  • BMO analyst Tamy Chen suggested overall industry sales volumes could increase as much as 35% if Ontario opened a total 325 stores over 2020. Unless the government begins approving more than 20 stores monthly, however, Ontario will not have more than 180 new stores by the end of 2020.
  • To equal Alberta’s stores-per-person rate, Ontario would need 1,000 stores. At the proposed rate, it would take until 2024 to open that many.
    Global News