Cannabis Licensing Surges in Minnesota as State Prepares for Legal Sales

27 March 2025

Minnesota is moving closer to launching the legal adult-use cannabis market, with over 3,500 business license applications submitted to the state’s Office of Cannabis Management (OCM). That includes more than 1,700 general applications and around 1,700 from social equity applicants—veterans, people impacted by past cannabis laws, and those from low-income areas.

More than half of all applicants are seeking microbusiness licenses, which allow owners to grow, process, and sell cannabis on a small scale and don’t require going through a license lottery. Retailers, cultivators, and manufacturers will go through lotteries in May and June, with social equity applicants getting the first shot.

Regulators have also submitted the state’s cannabis rules to a judge for final approval. One controversial change is a new THC potency cap for concentrates, raised to 80% after public feedback. Industry experts warn of possible overcrowding in cities like Minneapolis and St. Paul, where dispensary limits don’t currently exist.

Minnesota’s first legal cannabis businesses could open later this year, and the state is also working with tribal nations to expand retail access beyond reservations.