Out-of-State Applicants Dominate Minnesota’s Early Cannabis License Applications

LOS ANGELES- Minnesota’s newly established cannabis market is attracting significant interest from out-of-state applicants, according to recent data from the Office of Cannabis Management (OCM). Of the 1,817 pre-applications submitted this summer for various cannabis licenses, over half originated from individuals residing outside Minnesota.

The state’s cannabis law does not mandate residency, allowing out-of-state applicants to compete alongside local entrepreneurs. This open eligibility has sparked concerns among some Minnesota-based applicants, who worry that large corporations from outside the state may dominate the market. Angela Dawson, CEO of Bold North, a Minnesota-based cannabis startup, expressed concerns about the potential impact on the local craft industry, which the state has aimed to foster.

Despite the influx of out-of-state applications, the first round of licenses will prioritize social equity applicants, who make up the majority of the early applicants. The OCM has verified social equity status for 2,307 individuals, with 39% being military veterans and 29% having previous cannabis-related convictions. These applicants will undergo further review before being entered into a lottery that will determine who receives the license pre-approvals.

Minnesota plans to issue a total of 280 licenses, with the highest number allocated to microbusinesses and retailers. The first legal sales of adult-use cannabis in the state are expected to begin next year.

While the state’s open eligibility approach has attracted a diverse pool of applicants, the outcome of the lottery process will be closely watched by local entrepreneurs and industry observers. The OCM is expected to finalize the license awards once the necessary infrastructure is in place.