A Minnesota judge has mandated the state’s cannabis regulators to conduct a lottery to issue business licenses to qualified social equity applicants. This decision comes amid concerns that the lottery process might be canceled altogether. Ramsey County District Court Judge Stephen Smith stated that social equity applicants for adult-use marijuana licenses experienced a “public wrong,” emphasizing that the state’s Office of Cannabis Management (OCM) has a legal responsibility to proceed with the lottery.
In November, Judge Smith had paused the lottery after some denied applicants filed a lawsuit. They argued that the licensing process lacked transparent criteria and did not provide a means for appeals. Before this ruling, the OCM warned that any delay could jeopardize the lottery, citing potential costs and logistical issues.
Following the judge’s ruling, the OCM reassured the public in a statement that it expects to start issuing licenses to qualified social equity applicants within weeks. They noted that there are currently over 1,000 qualified applicants ready to receive business licenses. The OCM had been clear since November, stating that any delay to the lottery could be detrimental to the preapproval process.
As of March 24, regulators reported receiving a total of 3,529 applications for one of the ten adult-use license types. Nearly half of these applications, specifically 1,741, were submitted by social equity candidates. Minnesota legalized recreational marijuana in 2023, and both operators and advocates had anticipated that adult-use sales would already be underway by now.
