Laura Smith
In 2025, Denver will begin offering psilocybin-assisted therapy, allowing adults to legally trip on psychedelic mushrooms under supervision. While the state has decriminalized psychedelic mushrooms, selling them remains illegal. Instead, customers will pay to use them in a supervised environment or receive them for free for personal use. The new licensing laws for psilocybin businesses in the city will require healing centers and practitioners to have both state and local licenses, while cultivation, manufacturing, and testing facilities will only need a state license.
| Characteristics | Values |
|---|---|
| Legal status of selling mushrooms in Denver | Selling mushrooms is illegal and punishable by criminal penalties. |
| Legal status of possessing mushrooms in Denver | Adults over the age of 21 can legally possess mushrooms. |
| Legal status of gifting mushrooms in Denver | Adults over the age of 21 can legally gift mushrooms to other adults. |
| Legal status of sharing mushrooms in Denver | Adults over the age of 21 can legally share mushrooms with other adults. |
| Legal status of growing mushrooms in Denver | Adults over the age of 21 can legally grow mushrooms for personal use. |
| Legal status of advertising mushrooms in Denver | Advertising mushrooms to minors is prohibited. |
| Legal status of using mushrooms in public in Denver | Using mushrooms in public is prohibited. Mushrooms must be consumed onsite at a licensed facility or healing center. |
| Legal status of buying mushrooms in Denver | Buying mushrooms is illegal. |
| Legal status of mushroom dispensaries in Denver | Mushroom dispensaries are not permitted in Denver. |
| Legal status of mushroom-related businesses in Denver | Mushroom-related businesses, such as guided experiences and therapy services, are allowed to operate in Denver but must be licensed by the Department of Regulatory Agencies (DORA) and the Department of Revenue's new Natural Medicine Division (NMD). |
| Legal status of psilocybin production facilities and supervised use sites in Denver | Applications for psilocybin production facilities and supervised use sites are expected to be available, but operators must first obtain the necessary licenses. |
| Regulation of the mushroom industry in Denver | The state plans to launch a strictly regulated mushroom industry with licensing requirements for healing centers, practitioners, cultivators, manufacturers, and testing facilities. |
| Timeline for legal mushroom sales in Denver | Legal mushroom sales are expected to begin in 2025. |
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What You'll Learn
Denver's new licensing law for mushrooms
Denver has adopted a new licensing law for psilocybin mushrooms, marking a significant shift in the city's approach to these substances. While the city previously decriminalised psilocybin, allowing for personal use and possession, the new law introduces a regulatory framework for psilocybin-related businesses.
Under the new rules, the sale of psilocybin mushrooms for personal or commercial use remains illegal. Instead, customers will have to pay to use the product in a supervised environment, such as a licensed healing centre, or it can be shared free of charge for personal use. This change aims to provide a controlled setting for the use of psilocybin while generating revenue for the state.
Denver's new licensing law sets out specific requirements for healing centres and practitioners. These entities must obtain both state and local licenses to operate. Additionally, the law enforces distance restrictions, prohibiting healing centres from operating within 1,000 feet of childcare centres and K-12 schools, ensuring that these facilities are located away from areas frequented by minors.
The law also addresses advertising practices, banning outdoor advertising for natural medicine, including psilocybin mushrooms, similar to the regulations for marijuana. This measure aims to reduce the exposure of minors to these substances and prevent any potential encouragement of use.
While the new licensing law brings structure to the industry, some critics worry about overregulation. There are concerns that strict regulations will make it costly to grow and use psilocybin mushrooms legally, impacting individuals who have found an affordable natural medicine. Additionally, the law's focus on licensed facilities may push existing grey-market operators further underground, creating a divide between regulated and unregulated sectors.
Denver's new licensing law for psilocybin mushrooms reflects the city's evolving approach to these substances, aiming to balance accessibility and supervision. As the law takes effect, the city will likely see the emergence of licensed psilocybin businesses, offering supervised therapeutic experiences to adults seeking alternative mental health treatments.
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Psilocybin therapy in Denver
In 2019, Denver became the first city in the United States to decriminalize psilocybin. In November 2022, Colorado voters legalized natural psychedelic medicines statewide, including psilocybin-containing mushrooms, with some caveats. While the possession and sharing of psilocybin mushrooms for personal use became legal for adults over the age of 21, the sale of these mushrooms remained illegal.
In light of these changing laws, a range of unlicensed psilocybin businesses has cropped up in Denver. These businesses offer guided experiences and other mushroom-related services, walking a legal tightrope by “sharing” mushrooms rather than selling them and charging for related services.
The state of Colorado plans to launch a strictly regulated mushroom industry, with the city of Denver adopting new licensing laws for psilocybin businesses. Under these new rules, healing centers and practitioners must have both state and local licenses, while cultivating, manufacturing, and testing facilities need only a state license. Denver will also ban healing centers within 1,000 feet of childcare centers and K-12 schools.
Psilocybin-assisted therapy is expected to launch in Colorado in the spring of 2025. This form of mental health treatment will involve tripping on psilocybin-containing mushrooms under the supervision of a licensed guide. While the exact number of psilocybin businesses in Denver is unknown, the interest in this nascent industry appears to be concentrated along the Front Range.
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Magic mushroom dispensaries in Denver
In 2024, Darren Lyman founded one of Colorado's first magic mushroom co-ops in Denver, taking advantage of the state's new psychedelic laws. However, Lyman insists that he is not selling psilocybin mushrooms but rather providing a space for others to grow and share them. He also sells informational pamphlets and other products related to psilocybin use. Lyman's operation is similar to that of Ashley Ryan, a self-proclaimed psychedelic guide who accompanies people on psilocybin trips.
Since the decriminalization of psychedelic mushrooms in Colorado, a grey market has emerged, with people offering guided experiences and other mushroom-related businesses. However, the state plans to launch a strictly regulated mushroom industry, and lawmakers are already trying to discourage informal operators. Denver has adopted new licensing laws for psilocybin businesses, and the state was expected to start licensing some businesses in March 2025.
Under the new laws, adults can cultivate, possess, and share psilocybin mushrooms, but selling them remains illegal. Psilocybin mushrooms will be distributed at licensed healing centers, but they must be consumed onsite during a guided trip and cannot be bought or sold for personal use outside these centers. The new state law does not allow for the retail sale of psilocybin, and Denver will not be limiting when natural medicine businesses can operate. Instead, customers will pay to use psilocybin in a supervised environment or receive it for free for personal use.
While the exact opening date of Denver's first legal psilocybin businesses is unknown, psychedelic-assisted therapy is expected to launch in Colorado in spring 2025.
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The legality of selling mushrooms in Denver
In 2022, Denver became the first city in the United States to decriminalize the psychedelic substance psilocybin. This removed criminal penalties for personal use, growing, and sharing. However, selling psilocybin mushrooms remains a felony in Denver.
In 2023, Colorado voters legalized psychedelic mushrooms, and rules are being written for licensing their therapeutic use. In 2024, Colorado residents age 21 or older were allowed to grow, possess, and share psychedelic substances for personal use. However, the sale of psychedelic substances for personal or commercial use is forbidden.
In 2025, Denver's first legal psilocybin businesses are expected to open, with the state beginning to license some businesses. The new state law does not allow the retail sale of psilocybin. Instead, customers will pay to use it in a supervised environment or receive it for free for personal use. Under Denver's new rules, healing centers and practitioners must have both state and local licenses, while cultivation, manufacturing, and testing facilities need only a state license.
Denver has also adopted a new licensing law, which does not allow natural medicines to be advertised to minors or for healing centers to misappropriate Native American and Indigenous cultures. The city will ban all outdoor advertising for natural medicine, similar to the regulations for marijuana. The new law also exempts members of federally recognized tribes who perform traditional or religious ceremonies from needing a license, but they must inform participants that they are unlicensed.
While the sale of psilocybin mushrooms remains illegal in Denver, the city has seen the emergence of a grey market, with a range of unlicensed psilocybin businesses giving away the drug while charging for related services.
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The future of Denver's mushroom market
In 2019, Denver became the first city in the United States to decriminalize psilocybin, a naturally occurring psychedelic compound found in certain mushrooms. Since then, a grey market has emerged in Colorado, with a growing number of people offering mushrooms and related services. However, the sale of psychedelic mushrooms remains illegal and punishable by criminal penalties.
In November 2022, Colorado voters approved Proposition 122, which legalized natural psychedelic medicines statewide for therapeutic use. Under this proposition, adults over the age of 21 can grow, possess, and share psychedelic mushrooms for personal use but not sell them. This has led to a rise in "mushroom-sharing guides" who charge for related services such as trip-guiding, rather than selling the mushrooms themselves.
While the new law has created opportunities for some, there are concerns about a lack of regulation in the industry. The state plans to launch a strictly regulated mushroom industry, with the first legal psilocybin businesses expected to open in 2025. Denver City Council has already approved rules for psilocybin businesses, including licensing requirements for healing centers and practitioners. However, some critics worry that overregulating the industry will make it prohibitively expensive to use psilocybin mushrooms legally, impacting those who have found an affordable approach to natural medicine.
As the industry moves towards legalization and regulation, it remains to be seen how the market will evolve and whether it will be able to strike a balance between accessibility and safety. The future of Denver's mushroom market is expected to bring changes to the way mushrooms are accessed and consumed, with a focus on supervised settings and licensed facilitators.
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Frequently asked questions
Denver will not allow the retail sale of psilocybin mushrooms. Instead, customers will pay to use them in a supervised environment or they can be shared free of charge for personal use.
Denver City Council has approved rules for psilocybin businesses in the city. Under the new rules, healing centers and practitioners must have both a state and local license, while cultivating, manufacturing and testing facilities need only a state license.
Some critics worry that overregulating the industry will make it prohibitively expensive to grow and use psilocybin mushrooms legally. There are also concerns about the potential for a crackdown from the federal government.
