Washington, DC is witnessing an unprecedented crackdown on unlicensed cannabis shops, as city officials accelerate enforcement efforts and padlock storefronts across the District. Over the past year, at least 50 cannabis businesses—most known as unlicensed “gifting” shops—have been ordered closed, marking a dramatic shift in the city’s approach to its thriving gray market. This intensified clampdown follows new legislation and regulatory measures designed to bring order to a cannabis marketplace that, for years, operated in a legal limbo.
Background: The Law and the Loophole
The District’s unique cannabis landscape dates back to 2014, when Initiative 71 legalized the possession of small amounts of marijuana for adults. However, Congress blocked DC from creating a regulated market for adult-use sales. Entrepreneurial vendors soon flourished by exploiting a legal loophole: selling trinkets or merchandise and “gifting” cannabis alongside. This “gifting” model, which became a staple across DC neighborhoods, blurred the lines of legality and allowed hundreds of shops to operate with little oversight.
New Laws, New Era of Enforcement
In July 2024, DC enacted the Medical Cannabis Conditional License and Unlicensed Establishment Closure Clarification Emergency Amendment Act, dramatically enhancing the powers of the Alcoholic Beverage and Cannabis Administration (ABCA) and the Metropolitan Police Department (MPD). ABCA was granted expanded authority to inspect, warn, and shutter unlicensed cannabis establishments, especially those posing immediate risks to public safety.
The deadline was clear: by March 31, 2025, all cannabis businesses were required to be licensed and fully compliant with the city’s growing regulatory framework. After that date, the city would show “zero tolerance” for shops operating in the shadows. Since then, DC’s enforcement teams—working with MPD and other agencies—have swept through the city, executing closure orders, padlocking storefronts, and confiscating vast quantities of cannabis, psychedelics, and sometimes illegal weapons.
The Numbers Behind the Sweep
Closures are happening citywide, affecting almost every ward. Authorities have recorded the following:
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50 illegal cannabis shops closed in less than a year.
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Major seizures included over 500 pounds of cannabis, 82 pounds of psychedelic mushrooms, 17 pounds of mushroom edibles, and 18 pounds of THC resin.
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At least 9 locations were found with unregistered firearms.
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The crackdown prompted an additional 20 businesses to close voluntarily or have their leases terminated by property owners, eager to avoid hefty $10,000 fines.
Much of this action has focused on notorious hotspots in Adams Morgan, H Street, U Street, and Kennedy Street, where apparent “gifting” shops drew neighborhood complaints and police visits.
Padlocks and Pushback: Inside the Closures
On June 9, 2025, authorities executed a closure order at “District 93,” citing its illegal operation and risks to public health. Just weeks earlier, “Wellshroomness” was padlocked and mushroom-laced edibles seized, and “B&K Convenience Store and Smoke Shop” faced a similar fate amid allegations of continued unlicensed cannabis retail.
Once a closure order is issued, business owners have the right to a hearing with the ABC Board but must present remediation plans to regain access to their properties. In some cases, fines and agreements not to sell illegal substances are part of the resolution.
Why the Crackdown Now?
City officials argue this surge in enforcement is vital for public health and for the success of DC’s legal cannabis industry. Unlicensed “gifting” shops operate outside the regulated system, selling untested products, dodging taxes, and undercutting legitimate dispensaries. The proliferation of these stores, officials say, has endangered consumers and made it harder for fully licensed dispensaries to compete.
Legal dispensary owners have long complained about the unfair playing field. “The new enforcement is finally leveling the market,” said one dispensary owner in Ward 1, noting a recent uptick in sales and customer confidence.
Economic and Social Ripple Effects
The closures have broader implications for the city’s cannabis economy. While some “gifting” shop operators lament sudden loss of income and staff layoffs, the city expects these moves will unlock new investment and foster a robust, transparent marketplace.
By the end of 2025, DC anticipates around 40 licensed cannabis retailers operating legally, supporting both consumer safety and the local economy.
What Comes Next?
With enforcement efforts only ramping up, officials warn that remaining unlicensed shops face swift action if they do not transition to the legal market. The ABCA and MPD’s focus has now shifted from just giving warnings to sealing doors on the spot. Business owners, property managers, and consumers alike are being urged to verify the license status of any cannabis retailer before making sales or purchases.
For the city’s long-shadowed cannabis industry, a period of uncertainty is giving way to an era marked by tighter rules and clearer opportunities. The message from DC regulators is unmistakable: the days of easy “gifting” are over, and the capital is turning a new page on cannabis.
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