MINNESOTA, USA — The Minnesota Office of Cannabis Management (OCM) announced Wednesday that it is ending the controversial license lottery system for aspiring business owners.
This decision comes after a judge ruled to halt the process due to a lawsuit filed by six business owners and individuals. The lottery - scheduled for Nov. 26 - was intended to preapprove cannabis licenses for verified businesses.
The plaintiffs argued that the OCM denied qualified business owners from participating in the lottery. OCM alleged the plaintiffs are the "face of a scheme to use hundreds of straw applicants to gain unfair advantage in the lottery."
Now, what is replacing the lottery system for businesses hoping to get cannabis licenses? The OCM announced Wednesday it would open a standard licensing cycle for social equity and general applicants in early 2025.
In the press release, the OCM stated it would notify 648 applicants who qualified in the lottery's preapproval process that their applications will move forward. For those who applied for licenses that are not capped by statute, they can move on to next steps.
However, licenses are capped for microbusinesses, mezzobusinesses, cultivators, manufacturers, retailers, wholesalers, transporters, testing facilities and delivery services. These applicants will proceed to either the upcoming social equity lottery or general lottery.
As for applicants who were denied in the preapproval process, the OCM said they can either move forward in the general licensing cycle or discontinue participation.
“We remain committed to launching an equitable, sustainable, and responsible cannabis marketplace in Minnesota,” said OCM Interim Director Charlene Briner in a press release. “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.”
Social equity candidates can be approved starting Jan. 15, 2025. Applicants in the general cycle can be approved starting Feb. 18.
The application window closes March 14 and the lottery is scheduled to take place sometime in May or June.
