Minnesota Awards 249 Cannabis Business Licenses in State’s First Lottery

LOS ANGELES- Minnesota’s Office of Cannabis Management (OCM) held its inaugural lottery on June 5, 2025, awarding 249 provisional licenses for social equity and general applicants across four categories: cultivator, manufacturer, mezzobusiness, and retailer.

The recipients were selected from 776 qualified applicants, with social equity participants—including military veterans, individuals from economically disadvantaged areas, and those previously convicted under cannabis laws—taking precedence in the lottery. Unselected social equity applicants were entered into the general retail pool for a subsequent draw on July 22.

OCM Interim Director Eric Taubel described the day as foundational for an “equitable and safe adult-use cannabis market,” marking a significant step nearly two years after recreational cannabis legalization in May 2023 . Lottery winners must now complete several regulatory steps—including background checks, labor peace agreements, securing sites, and local approvals—before receiving full licensing .

The winners join approximately 400 microbusiness applicants in the pipeline for uncapped license categories. OCM plans to open registration this summer for hemp-derived cannabinoid products and event organizer licenses, per new 2025 legislation .

Industry observers note that the lottery approach replaced a point-based system to minimize litigation risk and ensure transparency in license allocation. Minnesota has also authorized off-reservation adult-use cannabis sales via tribal compact agreements, expanding retail access outside the state system