The launch of Minnesota’s adult-use industry is facing setbacks after state officials announced the cancellation of the early licensing lottery for social equity applicants. This decision comes in response to lawsuits claiming unfair denial of applications, prompting a judge to halt the process.
The Minnesota Office of Cannabis Management (OCM) has confirmed that instead of early preapproval for social equity applicants, the state will transition to general licensing applications in mid-February, followed by separate lotteries in May or June for both social equity and general applicants.
Interim OCM director Charlene Briner expressed disappointment in the outcome but emphasized the importance of avoiding further delays:
“A protracted period of uncertainty is an unacceptable outcome that could diminish the opportunity for social equity applicants to succeed in this market,” Briner stated. “We remain committed to ensuring that qualified applicants have a clear path forward.”
The 648 applicants previously accepted into the abandoned lottery will automatically proceed in the licensing process without additional fees, ensuring their inclusion in the next phase.
Minnesota’s adult-use market, initially set to launch in early 2025, aims to create opportunities for entrepreneurs while building a robust supply chain. However, the recent changes underscore the challenges of balancing equity goals with legal and procedural hurdles.
