Maryland Cannabis Laws Expand in 2025: On-Site Lounges, Cannabis Events, and Expungement Reform

22 April 2025

Maryland Cannabis Laws Expand in 2025: On-Site Lounges, Cannabis Events, and Expungement Reform

Maryland’s cannabis sector is undergoing its largest transformation yet. This year, Governor Wes Moore signed sweeping legislation, based on a comprehensive Maryland Cannabis Administration (MCA) study and guided by House Bill 132 and Senate Bill 215, legalizing on-site cannabis consumption lounges and cannabis events statewide.

These changes significantly impact medical marijuana in Maryland, recreational cannabis consumers, and entrepreneurs entering the Maryland cannabis industry.

Key Changes in Maryland Cannabis Laws:

• On-site cannabis consumption lounges authorized with strict safety, operational, and zoning requirements.
• Cannabis event licensing created for temporary sales and consumption, with vendor permits available.
• Limited application windows for social equity applicants initially.
• Expanded expungement reforms for low-level cannabis convictions.

How Maryland’s Cannabis Consumption Lounges Will Operate

Following a detailed study comparing other states' frameworks, Maryland adopted a cautious but business-friendly model:

For on-site consumption lounges in Maryland:

• No indoor smoking is permitted under new law; only vaping, edibles, and cannabinoid beverages (5 mg THC per serving) may be consumed indoors.
• Cannabis must be purchased on-site; patrons cannot bring outside cannabis.
• All products must be single-serving, properly labeled, and lab-tested under Maryland cannabis testing regulations.
• Lounges may now operate as food service facilities, offering non-cannabis food to enhance the consumer experience.
• Hours of operation and zoning approvals are controlled by local jurisdictions.
• Staff must complete annual responsible vendor training, focusing on safe consumption and intoxication awareness.

Importantly, the legislation now allows on-site establishments to repackage and process cannabis for the creation of single-serving products — a major shift supporting lounge viability.

New Cannabis Events and Vendor Permits in Maryland

In addition to lounges, the state is launching a framework for processing licensed cannabis events in Maryland.

The new cannabis event framework includes:

• Event organizers must apply for a Cannabis Event Registration at least 60 days before the event.
• The event must be listed on the MCA website
• Events are capped at 48 hours (or 4 consecutive days at the same location).
• Only edibles and cannabinoid beverages are allowed for on-site consumption (no smoking or vaping).
• Vendors must obtain a Vendor Permit to sell single-serving cannabis products.
• Sales are subject to state cannabis sales tax, with event location determining local revenue distribution.
• Local governments can prohibit, ban, or impose additional fees on cannabis events within their jurisdictions.

Vendor permits are initially restricted to social equity applicants until June 30, 2028, after which dispensaries and processors can also participate.

Expungement Reform Continues to Advance

Governor Moore’s cannabis reform package also expanded automatic expungement protections:

• Low-level cannabis convictions, especially those pardoned under the 2023 executive clemency order, will be automatically shielded from public view.
• This supports fairer access to housing, employment, and participation in the Maryland cannabis cultivation, retail, and ancillary markets. \

What Maryland Consumers, Patients, and Businesses Need to Know

For cannabis consumers and medical patients:

• Safe, social spaces for cannabis consumption are coming soon.
• Expect lounges offering edibles, beverages, and vaporized products — currently with no indoor smoking, unless future legislation changes.
• Attend licensed cannabis events featuring vendors selling regulated, lab-tested products.

For cannabis entrepreneurs and dispensaries:

• New business models (lounges and event vending) offer major growth opportunities.
• Licensing remains competitive, with early access prioritized for social equity applicants.
• Maryland dispensaries can now seek lounge licenses (a key change from earlier rules).