The measure, known as Issue 3, would have amended the state constitution to legalize the personal and medical use of marijuana for anyone over 21.
However, the measure was defeated by nearly a two-to-one margin, the projections said.
Pro-legalization campaigners spent about $12 million in advertising in the run-up to November 3 vote.
Issue 3 would have granted rights for marijuana to be grown commercially at 10 sites across Ohio, which critics said could have created a monopoly.
The backers of the 10 growing sites had many famous names as investors, including former pop singer Nick Lachey, fashion designer Nanette Lepore and Woody Taft, a descendant of President William Howard Taft.
The legalization measure would have allowed marijuana, pot-infused sweets and other related products to be purchased in stores. Home-growers could keep up to four flowering marijuana plants.
There was strong opposition to the measure from children’s hospitals, business organizations and farmers.
Colorado, Washington, Oregon and Alaska, along with the District of Columbia, have legalized recreational marijuana.
More than 20 states permit its use for medical purposes.
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