South Dakotans for Better Marijuana Laws (SDBML) submitted signatures in May of 2022 to the Secretary of State to place an adult-use cannabis legalization measure on the state's November 2022 ballot after the last voter- approved legalization initiative was struck down by the South Dakota Supreme Court. The measure was defeated with 52.92% of voters saying no.

This is the latest in the rollercoaster that is the South Dakota cannabis market. Voters had approved of full legalization in 2020 with 54% voting yes. Shortly after, Highway Patrol Superintendent, Col. Kevin Miller attempted to sue the state citing that the measure had violated several state tenents in its attempt to be passed. As of August 2023, adult use is prohibited.

There is no notable activity at this time.

With a population of ~900K, attractive assets will be based on each municipality. The state is not overwhelmingly in support of a legal cannabis market yet, and there are no reasons to expect any major shifts. It’s hard to see many scaled and profitable operations here. Look for retail with strategic moats around Bass Pro Shops and the local minor league team.