Oklahoma’s legal marijuana industry has shrunk about 80%, and state and federal authorities are still finding plenty left to prosecute
At its height, the Sooner State boasted almost 10,000 licensed grow sites. That number is now under 2,000.
In mid-July, the state announced that the Attorney General’s Organized Crime Task Force raided Dank Dispensary and Ontrac Express, two shops that allegedly allowed the sale of cannabis to individuals without a medical card.
“My office will continue to aggressively combat those who are conducting illegal business in the medical marijuana industry,” Attorney General Gentner Drummond said in a statement. “My Organized Crime Task Force continues to locate and shut down illegal operations nearly every day all across Oklahoma.”
Authorities also allegedly found fentanyl, heroin, ecstasy and cocaine when they raided the Black Purple Kush Dispensary in Tulsa.
“Oklahoma continues to send a clear message that this is not the ‘Wild West’ for criminal enterprises looking to exploit weak oversight,” added Oklahoma House Speaker Kyle Hilbert.
The crackdown has not just come from state authorities. Earlier this year, the U.S. Drug Enforcement Administration (DEA) announced a 51-person indictment from an alleged cannabis distribution network that originated in Oklahoma and allegedly distributed illicit cannabis to Texas, Mississippi, Kansas and North Carolina.
The raids in this case resulted in the seizure of about 61,000 cannabis plants and 550 kilograms of processed flower, according to the DEA.
“This investigation targeted a criminal organization that was producing and trafficking large quantities of marijuana across state lines, under the guise of a state-licensed operation,” said Joseph B. Tucker, DEA Dallas Field Division, special agent in charge.
The majority of the most recent revocations in Oklahoma occurred after state authorities identified untagged product on site at dispensaries. Investigators found non-compliant products ranging from as little as eight bags of unmarked trim, to over 100 containers of untracked flower.
Despite the shrinking pool of legal licenses, operators say they are still losing ground to competitors who ignore state regulations.
“I’ve got dispensaries that I advise them, ‘hey, don’t carry this product because it’s a direct violation,’ but 75% of the dispensaries carry it. I’ve had one dispensary report how much money they’ve lost because they took my advice. They don’t carry [out of compliance product], $24,000. Dispensary down the road carries it. What’s being done? Nothing,” said Jeremy Woods of Wild West Compliance during the July 17 meeting of the Oklahoma Medical Marijuana Authority.
Tighter Rules For Operators
The state recently passed House Bill 4454, which takes effect in October and is an attempt to tighten the rules for packaging and edibles, to reduce product appeal to minors.
Oklahoma currently has a license moratorium in place that is set to last until at least Aug. 1, 2028.
The state currently has 1,825 active cultivation licenses and 1,325 retail licenses, according to the CRB Monitor database. Those numbers are part of a total of 3,815 cannabis licenses, reflecting an ongoing decline of legitimate operators in the Sooner State. The state went from about 9,400 cultivators in 2021 to 6,400 in 2022, before dropping to its current level.
As part of the larger crackdown on licensing scofflaws, the state has arrested numerous people for straw buyer schemes, where the individual or one of their associates bought dozens, and some cases hundreds, of licenses on behalf of individuals who did not immediately qualify under the state’s residency requirements.
The first major instance of these legal actions took place in late 2022 when authorities arrested attorneys Eric Brown and Logan Jones for allegedly using their employees as straw owners.
In late 2023, authorities arrested Kevin Pham for allegedly operating a similar scheme. His name appeared on as many as 160 cannabis licenses at the time. Pham was convicted on July 9, 2025, and every license associated with his name was revoked.
A few months after Pham’s arrest, the state unsealed an eight-count indictment against Matt Stacy for allegedly acting as a straw owner for multiple operators. His name was associated with at least 161 licenses.
