Indiana Cannabis Market

The cannabis consultants at Point Seven Group are experts in the Indiana cannabis market. We have successfully helped our clients obtain cannabis licenses, design dispensaries, build identifiable cannabis brands, and operate compliant cannabis businesses. Our team of cannabis experts can help you reach your business goals in the Indiana cannabis market!


As of 2024, Indiana is witnessing a notable shift in its approach to cannabis legalization. While still restrictive compared to neighboring states, several legislative bills have been introduced that could significantly impact the state's cannabis policy.


Currently, adult-use cannabis is illegal in Indiana. However, recent legislative efforts, including Senate Bills 99 and 107, propose the legalization of cannabis for adults over the age of 21 and the establishment of a regulatory framework for its production and sale. These developments indicate a potential change in Indiana's cannabis policy, aligning with broader regional trends.


Medical marijuana remains illegal in Indiana, with no effective medical cannabis law in place. Efforts have been made to legalize medical cannabis, most notably in Senate Bill 126, which seeks to establish a medical marijuana program, allowing physicians to prescribe cannabis for certain medical conditions.



in potential tax revenue annually after three years

Indiana’s potential cannabis tax revenue has been estimated by the Tax Foundation using average excise tax figures and the number of cannabis-using residents in each state for markets established for at least three years.

The potential market for cannabis in Indiana is expected to grow significantly upon legalization. Drawing on trends in nearby states like Michigan and Illinois, Indiana's cannabis market could see substantial growth in both retail and ancillary services.


Indiana Cannabis Laws

Cannabis laws in Indiana have historically been stringent, but recent legislative developments indicate potential changes. Currently, possession, use, and distribution of cannabis are illegal, with strict penalties in place. However, a series of bills introduced in the 2024 legislative session are signaling a shift in this stance.

Senate Bill 99, authored by Sens. Rodney Pol and Fady Qaddoura, is a landmark proposal advocating for the legalization of cannabis for adults over 21 and for medical patients as determined by healthcare providers. This bill also proposes the establishment of a cannabis excise tax, suggesting a framework for the regulated sale of cannabis.

Senate Bill 107, aimed at establishing procedures for the lawful production and sale of cannabis, reflects a growing acknowledgment within the state legislature of the potential benefits of a regulated cannabis market. Additionally, Senate Bill 126, proposed by Sen. Greg Taylor, seeks to establish a medical marijuana program, allowing doctors to prescribe medical cannabis for certain conditions.

These bills represent a significant departure from Indiana's traditionally conservative approach to cannabis. While the outcome of these legislative efforts remains uncertain, they underscore a growing dialogue and openness to cannabis policy reform in the state.


Indiana's hemp laws, particularly concerning CBD and Delta-8 THC products, present a complex legal landscape. The state has made significant progress regarding CBD, following the passage of Senate Bill 52 in 2018. This law allows the sale, possession, and use of CBD oil, provided it meets specific criteria:

  • Derived from or contains parts of the Cannabis sativa L. plant that meet the definition of hemp.

  • Contains no more than 0.3% delta-9-tetrahydrocannabinol (THC) by weight.

  • Free from other controlled substances.

  • Not classified as smokable hemp.

Despite the legalization of CBD oil, the status of Delta-8 THC and other hemp-derived products remains in a gray area. Most THC variants, including Delta-8 THC, are considered controlled substances under Indiana law, even if they are naturally occurring in cannabis plants. This classification has led to a challenging environment for businesses dealing with these products.

Enforcement of hemp laws varies across the state, creating an unpredictable landscape for retailers and consumers. Some jurisdictions have actively pursued businesses selling Delta-8 THC products, while others have adopted a more lenient approach. This uneven enforcement underscores the need for businesses to stay well-informed of the evolving legal landscape in Indiana's hemp market.

Indiana hemp laws