Minnesota Cannabis Program Updates

Minnesota Cannabis Licensing Updates

Recreational cannabis in Minnesota has been legal since August 1, 2023, after Governor Tim Walz signed House File 100. This effectively legalized the use, possession, and cultivation of cannabis. Regulators have been working to establish frameworks for the industry and expect retail to begin in 2025, although tribal cannabis operations are already beginning to launch.

Minnesotans eager to enter the up-and-coming cannabis industry are closely following developments. Here’s the latest on Minnesota cannabis:

Minnesota Cancels Preapproval Process

On July 10, 2024, the social equity eligibility verification window closed. The Office of Cannabis Management says there will be future opportunities for those who missed the window.

Those deemed eligible for social equity licenses had from July 24 to August 12 to begin the licensure process. The Office of Cannabis Management reported receiving 1,817 applications by the end of that window. Businesses that have completed applications and received verification from the state will be entered into a lottery.

The state expected to dole out 282 licenses in the first cycle. Minnesota cannabis legislation allows for 150 dispensaries, with half of the allotted licenses going to social equity applicants. However, due to litigation, Minnesota canceled the preapproval process, and will be giving out all licenses in 2025.

What’s next for Minnesota cannabis licensing in 2025?

The next social equity verification process will open January 15. The application process for both social equity licenses and standard licenses will open on February 18th, and close March 18th of 2025.

Tribal nations embrace Minnesota cannabis

While regulators work to get the adult-use Minnesota cannabis industry up and running, some tribal communities are getting a head start. Some nations have enacted their own cannabis regulatory bodies to license and regulate cannabis sales on sovereign land.

Minnesota cannabis beverage market

While recreational cannabis sales in Minnesota have yet to officially begin, the state already has a booming cannabis beverage market. One industry estimate indicates that the Minnesota cannabis beverage industry is a $200 million market, with around 4,000 licensed retailers.

The beverage market proliferated in 2022 when a law took effect allowing anyone 21 or older to purchase edibles or beverages with up to 5 mg of hemp-derived THC.

Those who launched low-dose THC shops in response to this law may be left out of the upcoming adult-use market as the state has transitioned from a points-based system to a lottery. There are nearly 4,000 businesses registered to sell low-dose THC products across the state.

Are you interested in obtaining a cannabis business license in Minnesota? Call us to speak with an industry expert at 602-290-9424.

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