Minnesota cannabis office cancels license lottery, likely delaying start of retail sales
Minnesota's Office of Cannabis Management (OCM) will not proceed with the preapproval lottery for social equity applicants looking to enter the state's legal cannabis market in 2025, likely delaying the launch of retail marijuana sales in much of Minnesota.
The OCM scheduled a lottery to take place at the end of November, but applicants who were denied brought legal proceedings against the office, and a Ramsey County judge forced the postponement of the lottery.
The OCM maintains that the process weeded out "bad actors" who were looking to flood the application process or use other tactics to get a leg up in the market which were not in line with what the legislature envisioned when it created provisions for social equity licenses.
Instead of holding the lottery, and in an effort to continue moving forward with the licensing process to open a legal cannabis market in 2025, the OCM will proceed with a standard licensing cycle for both social equity and general applicants.
“We remain committed to launching an equitable, sustainable, and responsible cannabis marketplace in Minnesota,” OCM Interim Director Charlene Briner said in a statement. “Our path forward ensures we remain on track to launch Minnesota’s new cannabis market and also preserves some of the social equity benefits that were at the heart of the preapproval process and that are foundational to the law as it was originally conceived.”
The cancellation of the preapproval process means businesses won't begin receiving licenses until a new lottery is held in "May-June."
OCM Interim Director Charlene Briner said in a press conference on Wednesday that, depending on their readiness, it could take weeks to months for businesses to be up and running after licenses are granted.
The process has frustrated many who were approved for the lottery and hoped to be able to begin the process of financing, acquiring buildings, and getting labor peace agreements in place. However, those who were approved for the lottery will be moved into the social equity licensing process automatically.
Denied applicants have the option of receiving a refund on the application fees for the preapproval lottery. Those who proceed in the standard licensing process will have the ability to essentially appeal issues, something that was not allowed during the preapproval process.
“We recognize the disappointment of the 648 qualified social equity applicants who participated in the preapproval application process and are committed to ensuring their consideration in the next application cycle,” Briner says. “Leaving these applicants in limbo is not an acceptable outcome and would diminish their opportunity to succeed in the market."
Currently, the only place you can buy marijuana in person in Minnesota is at one of the several tribal dispensaries that have launched since the drug was legalized in summer 2023.
