We should know by the end of next week where the first batch of legal pot shops in Ontario could be located.
The Alcohol and Gaming Commission of Ontario (AGCO) said in a release that applications can be submitted online from 12:01 a.m. on Monday, January 7 until 12 p.m. on Wednesday, January 9.
After that application period closes, there will be a lottery draw on Friday, January 11 to determine the successful applicants with the results expected to be posted on the AGCO's website within 24 hours.
A total of 25 applicants will be selected through the lottery process, split into seven different regions. A maximum of seven stores will be up for grabs in the West Region, which stretches from Hamilton to Windsor and also includes Chatham-Kent, Lambton, and Middlesex. The rest of the stores will be divided up between the East Region (5), Greater Toronto Area (6), Toronto Region (5), and the North Region (2).
During the lottery process, applicants who miss out on the first round of selections will still go into a draw for a spot on the waitlist for their region. If any of the applicants on the selected list are later disqualified, declines, or withdraws, the next applicant in line on the waitlist in that same region will take the open spot.
The AGCO said the rules of the lottery have been established to encourage the opening of stores on April 1, 2019, adding that potential applicants who are not committed to opening a cannabis retail store on that date should not participate.
Anyone who files an application will be on the hook for a non-refundable Expression of Interest Fee of $75. The 25 applicants who are selected will be on the hook for another $6,000 non-refundable fee payment and they will also need to provide a $50,000 Letter of Credit, which will both need to be submitted within five business days of the AGCO publishing the lottery results on its website.
Municipalities in Ontario still have until January 22 to decide whether they will opt out of hosting cannabis shops, but applicants will only be considered for the lottery draw if they are located in a municipality that permits the retail sale of cannabis.
