APPLICATIONS OVER THE TOP

1,500 requests for 51 cannabis retail licences

There were roughly 30 times more applications received by the provincial government than there are licences available to operate a retail cannabis store in the province.

But the Saskatchewan Party government maintains it is “not sure what the market is going to look like” because the cannabis sales market is largely “unknown.”

Saskatchewan Liquor and Gaming Authority Minister Gene Makowsky said Friday, after announcing more than 1,500 submissions were competing for 51 retail permits, that there is “a lot of excitement right now, but it might not pan out.”

Much of that excitement from the 1,500 applications stems from the fact that when a government artificially restricts market access — in this case by capping the number of stores at 51 — those who are allowed to enter are essentially given carte blanche access to legal cannabis consumers.

How large the legal cannabis market will be in Saskatchewan remains unknown, however — and the province isn’t offering up even guesswork numbers. Instead Makowsky and his colleagues have maintained for months it is “difficult to say what the market is going to be.”

What the market will look like in part hinges on how much of the black market will be attracted to the regulated market, and how long it will take to get there.

Until a recent police crackdown, there were roughly a dozen retail stores illegally selling marijuana in Regina. That is six more than how many the province is planning to allow to legally sell in the city, but given the stores already have shown a willingness to operate illegally, there is at least some indication they may continue to do so if they aren’t given a licence.

For its six licences, Regina had 169 applications. In Saskatoon, seven licences are being sought by 177 applicants.

Although part of the end goal in legalizing the sale and consumption of cannabis is to stamp out the black market, there is an understanding doing so is no easy task. (In Colorado, where cannabis has been legal for since 2014, there is still a small black market).

Makowsky told reporters Friday — which happened to be “420,” the most sacred of dates in cannabis culture — his government would look at expanding the number of stores legally allowed to operate if the market dictated as much.

As to whether or not his government would allow those who had applied but failed to win the lottery this round have their application carried over, Makowsky said “that’s not decided yet.”

Each application involved a $1,000 non-refundable fee, meaning the province brought in roughly $1.5 million in revenue alone to the province.

Applicants will find out a few weeks before cannabis is legalized — expected this summer or fall — if they were successful in getting one of the 51 permits.

NDP justice critic Nicole Sarauer said she expected the province would reveal more information on Friday.

The high number of applicants was not surprising, as she called it a “real economic opportunity” but was surprised the province is still “dragging its feet” and leaving certain questions unanswered.

“These businesses need to get their business structure started, their spaces leased and still there is a big lack of information,” she said, noting she thinks the province is “absolutely” underestimating the market by offering 51 stores and is concerned the black market may continue to thrive.