On June 6, 2025, the Minnesota Office of Cannabis Management (OCM) held its first round of cannabis business license lotteries, marking a significant milestone nearly two years after the state legalized adult-use marijuana. This event represents an important step forward in building Minnesota’s regulated cannabis market.
The lotteries applied to three license types with limited quantities in state statute—cultivator, manufacturer, and mezzobusiness—and was open to two groups of applicants: Social Equity Applicants (SEAs) and General Applicants.
Social equity licenses are intended to help veterans, individuals who have been harmed by cannabis prohibition and those living in areas of high poverty to enter the legal cannabis industry.
The lotteries also included the drawing for cannabis retail licenses sought by social equity applicants. SEAs who are not selected last Thursday will still have the opportunity to participate in a second lottery on July 22, alongside general applicants.
Applicants selected in the lotteries must still complete final steps in the licensing process before they are granted a business license, including passing background checks, providing a signed labor peace agreement with a bona fide labor organization, securing a site location and approvals from local units of government, and submitting final business plans to OCM.
The lottery was livestreamed via OCM’s YouTube channel,using procedures modeled after similar efforts in other states. The process was conducted in partnership with Smartplay International, Inc.—a recognized provider of digital lottery systems—and Baker Tilly, a national audit and advisory firm. Both vendors have prior experience conducting cannabis license lotteries in other states.
The first four lotteries of the day were conducted at 11 a.m., drawing from a pool of 655 qualified SEAs. The remaining three lotteries took place at 2 p.m., selecting winners from a pool of 121 general applicants and 493 SEAs who were not chosen in the morning round.
“This is an exciting day for business owners preparing to establish themselves in the state’s new adult-use cannabis market,” OCM Interim Director Eric Taubel said in a statement. “We’re setting a strong foundation for an equitable and safe adult-use cannabis market that will mature over the next few years.”
In parallel with the capped license lotteries, the state is also progressing on licensing for uncapped license types. Nearly 1,000 applicants have reached “qualified” status, and close to 400 have received preliminary approval. These applicants—who are seeking licenses for testing facilities, wholesalers, microbusinesses, transporters, delivery services, and medical cannabis combination businesses—have 18 months to finalize their plans and secure local government approvals before OCM can issue a final license.
With its regulatory framework solidifying, Minnesota’s cannabis market is steadily expanding, drawing increasing interest from entrepreneurs and investors. For businesses considering entry into this emerging market, now is a critical time to understand the regulations and prepare strategic investments.
The news is sourced from Minnesota Office of Cannabis Management and The Minnesota Star Tribune
Post time: Jun-13-2025
