Cannabis Market Launch Nears as Minnesota Finalizes Rules and Revives Social Equity Lottery

7 April 2025

Minnesota’s journey toward a legal adult-use cannabis market finally gained momentum this month, thanks to two major legal victories for aspiring entrepreneurs — especially those from historically disadvantaged communities.

On April 4, Judge Stephen Smith of Minnesota’s Second Judicial District ordered the Office of Cannabis Management (OCM) to reinstate a previously canceled lottery that prioritizes social equity applicants. The decision breathes new life into efforts to ensure Minnesota’s cannabis industry reflects the communities most harmed by decades of prohibition.

The ruling follows months of legal gridlock. Last December, the OCM abruptly canceled the planned lottery over concerns about fairness and transparency, leaving nearly 650 preapproved social equity applicants in limbo. Judge Smith found that the cancellation violated state law, affirming that Minnesota’s legalization efforts must include clear pathways for social equity businesses to enter the market early.

Meanwhile, a second legal breakthrough arrived just days later: an administrative law judge signed off on Minnesota’s cannabis regulatory framework without requiring changes. This long-anticipated approval clears the way for the OCM to start issuing licenses and officially launch the market later this year.

Together, these two decisions mark a turning point for the state's cannabis rollout, which has lagged behind other states that legalized cannabis around the same time. Although the timeline still puts Minnesota among the slower movers nationally, officials and entrepreneurs alike now see a clearer path ahead.

For many of the 1,700 social equity applicants — more than half of the 3,500 total submissions — the reinstated lottery offers a second chance to secure one of the limited business licenses. The lottery covers licenses for cultivators, manufacturers, retailers, and microbusinesses, all carefully capped under state law to encourage manageable industry growth.

For Minnesota residents, these developments bring the reality of legal cannabis shops one step closer. And for would-be entrepreneurs — especially those historically excluded from such opportunities — the path to business ownership may finally be clearing.