Below, we explore three major categories defining cannabis reform in 2025:
- Medical states flipping to adult-use
- New medical or adult-use markets launching soon
- States with the most untapped potential
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States Transitioning from Medical to Adult-Use in 2025
These are the states with active legislative efforts, strong public support, or pending ballot measures that could legalize recreational cannabis this year.
1. Pennsylvania
“It’s time to legalize it.” – Gov. Josh Shapiro (Feb 2024 Budget Address)
Quick Stats:
- Population: 13.1 million
- Annual Visitors: 192.4 million
- Tourism Spending: $76 billion
- Per Capita Spending: $38,529
Pennsylvania’s robust medical program and bipartisan support are laying the foundation for adult-use legalization. Legislative proposals (HB 2210, SB 846) are gaining traction, with Governor Shapiro urging lawmakers to act in 2025.
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2. Hawaii
Quick Stats:
- Population: 1.4 million
- Annual Visitors: 9.5 million
- Tourism Spending: $17.75 billion
- Per Capita Spending: $56,202
Hawaii came close in 2024 with bills SB 669 and HB 1246. Though stalled, the momentum is strong, and legalization efforts are expected to resume in 2025 with a focus on equity and regulation.
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3. Virginia
Quick Stats:
- Population: 8.8 million
- Annual Visitors: 43.6 million
- Tourism Spending: $33.3 billion
- Per Capita Spending: $56,202
While adult-use possession is legal, retail sales are not — yet. A bill to begin legal sales in 2025 was passed by the General Assembly but vetoed by Governor Youngkin. Advocates are pushing to override or revive it next session.
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New Markets Launching Soon (Medical or Adult-Use)
4. Kentucky (Medical Launch in 2025)
Quick Stats:
- Population: 4.6 million
- Annual Visitors: 79.3 million
- Tourism Spending: $9.7 billion
- Per Capita Spending: $56,202
Kentucky will launch its medical program on January 1, 2025, after passing SB 47. Initial product access will be tightly controlled, but this marks a major shift for a historically prohibitionist state
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5. South Carolina
Quick Stats:
- Population: 5.3 million
- Annual Visitors: 30 million
- Tourism Spending: $24 billion
- Per Capita Spending: $56,202
The Compassionate Care Act (SB 423) passed the state Senate in 2024. The House could take it up in 2025, making it one of the last Southern states to legalize medical cannabis.
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6. Nebraska
Quick Stats:
- Population: 1.9 million
- Annual Visitors: 20 million
- Tourism Spending: $4.5 billion
- Per Capita Spending: $56,202
In November 2024, Nebraska voters approved two medical cannabis ballot measures—Initiatives 437 and 438—legalizing the use of up to five ounces of marijuana for medical purposes and establishing the Nebraska Medical Cannabis Commission to regulate the program. However, the launch is uncertain due to political and legal challenges. Legislative Bill 677, intended to implement and regulate the program, failed to advance from the General Affairs Committee in April 2025. Without legislative action, the regulatory commission lacks the authority and funding to oversee the program effectively. Additionally, ongoing legal challenges, including a lawsuit seeking to void the ballot measures, further complicate the program’s implementation.
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High-Potential States Still Not Legal (Yet)
7. Wisconsin
Quick Stats:
- Population: 5.9 million
- Annual Visitors: 113 million
- Tourism Spending: $22.2 billion
- Per Capita Spending: $56,202
Surrounded by legal states (Illinois, Michigan, Minnesota), Wisconsin remains stuck in prohibition. Advocates are pushing hard, and the economic argument is becoming difficult to ignore.
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8. Kansas
Quick Stats:
- Population: 2.9 million
- Annual Visitors: 36.5 million
- Tourism Spending: $7.3 billion
- Per Capita Spending: $56,202
Kansas has zero cannabis legalization but growing public support. Multiple medical bills have been introduced, and pressure from bordering Missouri may accelerate change.
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9. South Dakota
Quick Stats:
- Population: 919,000
- Annual Visitors: 14.5 million
- Tourism Spending: $4.4 billion
- Per Capita Spending: $56,202
Voters approved adult use in 2020, but the courts struck it down. Advocates have qualified a new measure for the 2024 ballot and hope to launch a recreational market by 2025.
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Final Take
“Cannabis reform is no longer a fringe topic — it’s a state-by-state economic engine.” – National Cannabis Industry Association (NCIA)
With economic incentives, public support, and neighboring state influence accelerating change, these nine markets represent the next major growth opportunities in U.S. cannabis.
Whether you’re an investor, operator, or policy advocate, 2025 is the year to watch.
