An interview about licensing, the RI dispensary lottery, zoning, competition, and more with Johnny Moretti of Aura Cannabis
To put it mildly, there’s a whole lot happening in the Rhode Island cannabis industry at the moment. Perhaps most notable is the introduction of new licenses. To help explain the game and everything that prospective owners as well as consumers can expect in the Ocean State, we spoke with one of the most knowledgeable operators in the state, Johnny Moretti of Aura Cannabis in Central Falls (they also have a Mass location right across the South Coast border in Fall River). You can find nuggets from our interview below …
How many retail licenses are currently available in the Rhode Island cannabis lottery, and how are they distributed across the state?
Rhode Island is issuing 24 new adult-use cannabis retail licenses, distributed evenly across six geographic zones. Each zone will have four licenses: two standard retail licenses, one social equity license, and one worker-owned cooperative license. This system is designed to ensure that every region of the state has fair access to the new cannabis market, avoiding over-concentration in just a few cities. The inclusion of social equity and worker-owned cooperative categories is a deliberate effort to create opportunities for those historically impacted by cannabis prohibition, as well as to promote alternative business models in the industry. By structuring it this way, Rhode Island aims to foster diversity, innovation, and regional economic growth across the cannabis sector.
What is the process for applying, and what qualifications or requirements must applicants meet to enter the lottery?
The application process has two main stages. First is merit-based screening, where applicants must submit detailed business plans, financial disclosures, zoning compliance documentation, security plans, and operational manuals. Only applicants who meet all compliance requirements and demonstrate operational readiness move forward to the lottery selection, which is conducted through a public, randomized drawing to ensure transparency.
This hybrid system helps filter out unprepared operators while still giving a fair chance to qualified candidates. Key requirements include proof of site control and zoning compliance, clean background checks, and financial capability to operate for at least one year without interruption. For social equity applicants, there’s an additional requirement to be a Rhode Island resident and to show proof of personal or family impact from past cannabis laws, ensuring that these licenses go to individuals who have been directly affected by prohibition.
Can you explain your role in Rhode Island’s cannabis industry and how it connects to the licensing process?
As COO of Aura Cannabis Company, I was deeply involved in building both cultivation and retail operations from the ground up. This included navigating Rhode Island’s complex compliance environment, securing licensing approvals, and assembling strong operational teams. I spearheaded the “Cultivator Takeover” initiative, which brought local cultivators into direct partnership with our retail locations, increasing visibility for small growers while boosting product diversity and sales. Through these efforts, we achieved over $1 million in combined sales and earned industry recognition and awards. My direct experience with licensing, zoning, hiring, compliance audits, and day-to-day operational management mirrors the skill set required for successfully obtaining and managing one of these new retail licenses. I’ve not only navigated the process before but proven my ability to create a thriving, scalable business within Rhode Island’s regulated cannabis market.
How many geographic zones are designated for retail licenses, and how does the zoning system impact where stores can open?
There are six geographic zones in Rhode Island, each with four available retail licenses. Zoning laws directly affect where dispensaries can open by requiring that they be at least 500 feet from schools and fully compliant with local land-use regulations. Applicants must submit proof of local zoning approval as part of their application, meaning you can’t simply win a license and then look for a compliant location afterward—you must already have control of a qualified site.
Additionally, several municipalities have chosen to opt out of allowing cannabis retailers altogether, which significantly limits available real estate in certain regions. This creates a highly competitive environment for securing eligible locations, especially in zones with fewer municipalities participating. Understanding these zoning constraints is essential for applicants, as a great business plan can be derailed by a lack of compliant property.
Have you encountered any local government or community opposition to new cannabis retailers in certain towns?
Personally, I’ve not faced any direct opposition from local governments or communities in my work. That’s largely because I prioritize early engagement with municipal leaders, community stakeholders, and residents before moving forward with a project. Building trust by being transparent about compliance measures, security protocols, and community benefits has consistently helped avoid friction. I believe the key is showing that a dispensary can be a positive addition to the local economy—providing jobs, tax revenue, and partnerships with local vendors—rather than a disruption. By fostering open communication and accountability from the start, I’ve been able to establish strong relationships that support smooth licensing and operational approval processes.
In your opinion, how will the addition of more licensed dispensaries affect cultivators and the wider supply chain?
From my perspective, the expansion of retail licenses will have both positive and challenging effects on the supply chain. On the positive side, more dispensaries mean increased shelf space and more sales channels for cultivators, allowing them to rotate inventory faster and lower their cost of goods sold. This was exactly the effect we saw with the “Cultivator Takeover” initiative, where increased exposure for growers helped boost overall market activity. However, there’s also the risk of oversaturation, which could drive prices down and create tighter margins especially for smaller operators. To succeed in a more competitive retail landscape, both cultivators and retailers will need to focus on strategic partnerships, brand differentiation, and quality consistency. The market will reward those who innovate and build strong customer loyalty, while less-prepared operators may struggle.
What’s your outlook on the long-term impact of the lottery system? Will it encourage fair competition or create new challenges?
The hybrid approach combining merit-based screening with a public lottery has the potential to balance fairness with operational readiness. By screening out unqualified applicants before the lottery, Rhode Island reduces the risk of licenses going to those who aren’t prepared to operate compliantly. However, there’s still a concern that well-capitalized companies will have an advantage in meeting the upfront requirements, leaving smaller or social equity applicants at a disadvantage despite the lottery format.
Long-term, the success of this system will depend on the state’s ability to provide strong support for social equity and cooperative license holders, ensuring they have the resources to compete. From my experience, the businesses that succeed will be those that pair compliance with community engagement, creating not just retail outlets but trusted, value driven brands. I see real potential for the system to work if those equity safeguards are maintained and expanded over time.
