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Minnesota Cannabis Office Abandons Early License Lottery, In Move That Could Affect Market Rollout

Interim OCM director Charlene Briner, left, said the office remains "committed to launching an equitable, sustainable, and responsible cannabis marketplace." (Glen Stubbe/The Minnesota Star Tribune)

648 applicants were originally accepted into the early preapproval lottery

Minnesota cannabis regulators announced Wednesday they will no longer hold an early lottery for social equity applicants seeking business licenses in the new marijuana market, a move that could affect the rollout of the industry.

The decision comes after a Ramsey County judge blocked the Office of Cannabis Management (OCM) from holding a license preapproval lottery, after several applicants filed lawsuits claiming they were unfairly denied entrance to the pool. A lawyer representing the OCM had warned the judge that a delay could force the office to abandon the preapproval lottery entirely.

The license preapproval lottery for social equity applicants was meant to give veterans, residents of high-poverty areas and people negatively affected by cannabis prohibition a head start in the new industry. It would have given aspiring cannabis business owners the certainty needed to secure investment, commercial real estate and local zoning approval. Preapproved cultivators would have been allowed to start growing now, helping establish the state’s cannabis supply chain.

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Marijuana Retail Report, is a national daily online trade publication serving retailers of marijuana products and accessories. News and information are geared strictly to select retail channels, with distribution limited to licensed collectives, recreational retailers, accessories retailers, and wholesalers.

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