Idaho’s 2023 Liquor Reform: Changes and Frustrations

If you’ve lived in the Treasure Valley the past several years or you’re thinking about moving here, you’ve probably noticed the boom in breweries, cocktail bars, gastropubs, and trendy restaurants.

With all that growth comes demand for liquor-by-the-drink licenses. But until recently, getting one was nearly impossible in many cities. In 2023, the state government tried to fix the system. Nearly three years later, things still look a lot like they did before.

Here’s a breakdown of what changed, what didn’t, and what that means if you’re a local entrepreneur or a newcomer interested in Idaho’s growing dining scene.

What Did the 2023 Law Do?

The 2023 reform, Senate Bill 1120, made a few major changes.

First, it ended the sale of new private liquor licenses on the open market. This was meant to reduce speculation and make the system more fair.

Second, it limited existing license holders to just one resale or transfer. That means a license cannot continually change hands like a commodity.

Third, it eliminated the longtime “75-year business” exemption. Previously, a business that had operated continuously for 75 years could receive an automatic license regardless of demand or location.

The idea behind these changes wasn’t to restrict liquor sales, but to address a bigger problem. Licenses had become scarce in many cities.

Under Idaho’s old quota-based system, the number of licenses a city could issue was tied to population. Every city got two licenses, plus one additional license for every 1,500 residents.

Once cities reached their quota, new businesses couldn’t get a license unless an existing one was sold or transferred. Over time, this created a secondary market where licenses could sell for hundreds of thousands of dollars.

SB 1120 aimed to curb that speculation by limiting resale, restricting transfers, and closing quota loopholes. On paper, it was meant to make license allocation more equitable and give real restauranteurs, not investors, a chance to open new spots serving liquor by the drink.

What the Reform Didn’t Fix

Despite the big structural changes, licensing turnover hasn’t increased. In fact, it’s gone down.

In fiscal year 2022, before the reform, there were 67 license transfers statewide. By 2024, that number dropped to 41.

In Boise, transfers hovered around 12 in 2022, dipped to 8 in 2023, and ticked back up to 13 in 2024. That’s hardly a boom.

Meanwhile, many businesses remain stuck on long waitlists. As of October 2025, roughly 140 businesses in Boise alone were waiting for a license, some for years.

Why Has Turnover Slowed?

A few factors likely play a role:

• Existing license holders are reluctant to sell. The value of a transferable license likely dropped after the reform, so fewer owners are parting with them.

  
  

• New licenses are being issued slowly. Population-based licenses trickle in gradually, and Boise’s slower growth limits the number of new spots.

  
  

• Barriers remain high for entrepreneurs without deep pockets. Even with reforms, getting a liquor license is still an uphill climb for smaller, bootstrap businesses.

  
  

In short, the law changed, but the day-to-day experience for many entrepreneurs hasn’t.

Why This Still Matters, Especially in Fast-Growing Cities

Even with reforms slowing resale and cutting out speculators, the system is still constrained. Here’s why that matters:

1. Demand Still Outpaces Supply

Population-based quotas just can’t keep up in fast-growing areas. Suburbs and smaller cities around Boise may gradually add licenses as population increases, but the process is slow.

High-demand areas see potential businesses blocked because the quota system caps licenses. Many good ideas never get off the ground.

2. It Can Lock Out Small Entrepreneurs

The old system allowed clever entrepreneurs to lease or trade licenses to get started. Now, with transfers limited, only those with significant capital have a shot.

A former downtown Boise bar owner put it bluntly: the new rules make it harder for creative, smaller businesses to succeed because only those rich enough to hold a liquor license get to play.

3. Licenses Remain a Bottleneck Across the Region

Treasure Valley isn’t just Boise. Cities like Nampa, Caldwell, Kuna, Star, and suburbs such as Chubbuck have varying numbers of available licenses.

Even with these allocations, demand often exceeds supply. Many potential businesses never open or cannot serve alcohol, even with a customer base. The quota system continues to shape the food and nightlife landscape.

Why Lawmakers Did It

The 2023 law followed decades of complaints about the old system.

Licenses had become speculative assets. A permit costing $750 when first issued could be flipped for hundreds of thousands of dollars. The reform aimed to curb speculation and give genuine hospitality businesses a fair shot.

Nearly three years later, transfers have dropped, waitlists remain long, and new licenses are issued only slowly through population growth.

This raises questions about whether the quota-based system still works for a region experiencing rapid growth, demographic changes, and an evolving economy. Restricted-access models can hinder entrepreneurship, limit competition, and reduce consumer choice.

What It Means for Locals, New Residents, and Entrepreneurs

If you live in or are moving to the Treasure Valley, or hope to open a bar or restaurant, here’s what you need to know:

• Don’t assume the law makes it easy to get a liquor license. The system remains restrictive.

  
  

• Opening a business serving liquor will likely require patience, persistence, and, if you want to avoid waiting decades, deep pockets.

• In high-demand cities like Boise, expect long waits. About 140 businesses are still waiting for licenses.

• Suburbs and smaller cities may have slightly more opportunities, but don’t count on a flood of new licenses.

The bars, restaurants, and lounges you see open today were likely started by people who navigated the quota system successfully, not by a new wave of entrepreneurs.

Where Things Could Go from Here

Is the quota-based system still appropriate for a growing state like Idaho? Or is it time for a new framework, like a population-adjusted or open-market system, that scales better with growth?

Some suggest loosening quotas, giving cities more discretion, or creating alternative license categories for small brewpubs, pop-ups, or limited-capacity venues. A balanced system would support small businesses while maintaining oversight for public health and community outcomes.

Any change would likely be contentious. Legacy license holders may resist, lawmakers may worry about over-proliferation, and communities may raise concerns about alcohol-related social impacts.

Why It Matters Even If You Aren’t in Hospitality

Even if you don’t plan to open a bar, the rules affect your neighborhood. They influence nightlife, restaurant options, and social hubs.

As the Treasure Valley grows, much attention goes to housing and infrastructure, but the types of local gathering places matter too. Limited licenses can restrict diversity in nightlife and community-focused spaces.

At the same time, scarcity may encourage creativity, leading to wine-and-brew-only spots or social events outside traditional liquor licensing.

Final Thoughts

The 2023 liquor-license reform was an attempt to curb speculation and create a fairer system. But in late 2025, many bottlenecks remain. Transfers are limited, waitlists are long, and opening a new bar, brewpub, or restaurant serving liquor is still challenging.

The system has changed but hasn’t solved the core problem. If Idaho, and specifically the Treasure Valley, wants more diverse, accessible, and community-driven hospitality options, it may be time to rethink the quota model for a region experiencing rapid growth and changing needs.

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