Minnesota’s highly anticipated cannabis license lottery has been temporarily halted by a judge after several applicants filed lawsuits, arguing that the process was unfair and flawed.
Initially set for Tuesday, November 26, the lottery to determine who will receive the state’s social equity marijuana licenses has now been paused. The lawsuits were filed by applicants who were excluded from the lottery, claiming procedural errors and issues with the timeline. The delay raises questions about when the state will begin issuing cannabis licenses and when legal sales might actually commence.
Legal Issues Stirred the Lottery Delay
Minnesota legalized cannabis in August 2023, with sales currently restricted to tribal lands. Broader business licenses are expected to be rolled out in 2025, but the first round of licensing, which was to include 280 licenses, has encountered significant hurdles.
Of the 1,800 applications submitted for these licenses, roughly two-thirds were approved by the Minnesota Office of Cannabis Management (OCM). However, more than 1,100 applicants were rejected. Many of those who were excluded argue that minor errors, such as missing paperwork or slight inconsistencies, should not have disqualified them from the lottery. Some applicants have gone as far as claiming that procedural mistakes by the OCM led to their unfair exclusion.
Frustration Among Rejected Applicants
One applicant, Sam Milstein, a Hopkins resident, shared his frustration after being denied access to the lottery despite believing he had done everything right. “We spent so much time and effort on the application,” Milstein said. “I dotted every I and crossed every T. I just thought there was no way I wouldn’t be approved.”
Milstein was aiming for a transport license, which had fewer applicants than social equity licenses. Despite his optimism, the OCM denied his application, leaving him shocked and confused. Milstein is one of many applicants who has now taken legal action against the OCM, along with others who claim to have been unfairly excluded.
- Over 1,100 applicants were rejected.
- 640 applicants remain eligible for 280 licenses.
- Lawsuits claim procedural errors led to unfair rejections.
A Potential Setback for Minnesota’s Cannabis Market
The legal challenges have already delayed the lottery process, and the clock is ticking as Minnesota heads toward broader cannabis sales in 2025. Industry insiders are now concerned that further legal battles could push back the timeline even more, delaying the start of legal cannabis sales in the state.
“I think they can make this go away by creating a reasonable process by which people can be heard, have five minutes to fix these applications and some kind of short review window,” said attorney Jen Randolph Reise, representing some of the plaintiffs. However, the OCM has yet to take steps to resolve the issue in this way, leaving many applicants and industry professionals uncertain about what’s next.
OCM Stands by Its Process
In response to the lawsuits, the Minnesota Office of Cannabis Management issued a statement expressing disappointment but standing by its process. Charlene Briner, the interim director, emphasized that the review process had revealed numerous issues, such as “zone flooding” and predatory practices, that needed to be addressed. According to Briner, these concerns were part of why so many applications were rejected.
Despite this, those representing the rejected applicants continue to argue that the OCM’s process was flawed and that there is a way to rectify it without causing further delays.
What Happens Next?
With the case now in the hands of the Court of Appeals, it’s unclear how long it will take before the lottery resumes. The judge’s decision to pause the lottery has already sparked uncertainty among both approved and rejected applicants, many of whom had been eagerly awaiting the chance to enter the cannabis market.
While some remain hopeful that the issues will be resolved quickly, others, like applicant Devon Beste, are left in limbo. “Everything being up in the air, I don’t know,” Beste said. “I probably won’t sleep much tonight just because of it. I’m still optimistic and hope for the best.”
As the legal battle continues, the question remains: When will Minnesota’s cannabis market actually open to business?
