Alcohol Licensing Caps in Light of COVID-19
WASHINGTON (May 5, 2021)—COVID-19 has changed the way states manage their alcohol laws and policies. While alcohol delivery and to-go cocktails have grabbed most of the headlines, policymakers are also using this opportunity to re-think outdated rules around alcohol licensing.
In a new policy study, R Street Senior Fellow of Competition Policy C. Jarrett Dieterle examines the way that States can place onerous and outdated restrictions on alcohol licenses, such as limiting who can possess those licenses and how many licenses are available in a given area. As numerous states are re-thinking their alcohol licensing laws in the midst of COVID-19, Dieterle argues for the reassessment of restrictions that often create a whole host of adverse consequences, including rising license prices and limitations on the growth the expanding alcohol delivery marketplace.
“The alcohol marketplace faces some of the greatest challenges of any industry during the pandemic—often because it labors under more outdated legal rules than nearly any other sector. This is why it is paramount that legislators and regulators focus on reforming government guidelines in a way that allows the marketplace to adapt and grow, said Dieterle.
Read the full policy study, “Revisiting Alcohol Licensing Caps in 21st Century America,” here.
