ST PAUL, Minn. — The cannabis lottery isn't happening this week as planned after a judge approved a motion to halt the lottery while a lawsuit is ongoing.
Minnesota became the 23rd state to legalize recreational marijuana in 2023, and this past summer the Minnesota Office of Cannabis Management (OCM) announced businesses deemed verified to meet social equity eligibility requirements could start the process of getting licensed. A lottery for those licenses was scheduled for Nov. 26, with general licensing anticipated for next year.
A lawsuit was filed by Cristina Aranguiz and Jodi Connolly, against the OCM. The plaintiffs asked for a temporary injunction to keep this lottery from happening until the "resolution of this matter", which a judge approved.
Interim director of the OCM Charlene Briner in a statement called Cristina Aranguiz and Jodi Connolly "bad actors who seek to overwhelm the system at the expense of legitimate, prospective business owners."
According to the OCM, the plaintiffs in the lawsuit are the "face of a scheme to use hundreds of straw applicants to gain unfair advantage in the lottery" and allege they are "using the judicial process to thwart the ambitions and dreams of legitimate social equity candidates who have a once-in-a-lifetime opportunity to get a head start in this industry."
While it is technically legal to possess and grow cannabis in Minnesota, the law is subject to limits meant to keep a lid on things while the state sets up a full-blown legal cannabis industry. In the year that most prospective businesses have been in limbo, a handful of sovereign tribal nations have been able to take advantage of working outside the state's regulatory framework.
A spokesperson with the OCM on Monday sent KARE 11 the following statement:
While we are disappointed by the decision to prevent OCM from moving forward with the license preapproval lottery tomorrow, we stand by the process used to review applications. Minnesota’s approach has always aimed to protect the integrity of a social equity license, and the rigorous review also allowed us to identify and prevent bad actors from entering the system. State statute sets high standards for applicants to successfully complete applications while also filtering out those with malicious intent.
We remain committed to launching an equitable, sustainable, and responsible adult-use cannabis marketplace in Minnesota.
