
Green Light Given to 249 Minnesota Startups In Once-Banned Industry
Minnesota's rollout of recreational marijuana has been almost historically slow, but things are starting to pick up now that a majority of the legal challenges have been resolved.
One of the biggest steps in the process just happened late last week. The state's first cannabis business license lottery took place in St. Paul, hosted by the Office of Cannabis Management, and the results are in.
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Lottery Moves Minnesota Closer to Legal Weed Sales
The lottery, the first of two scheduled, awarded licenses to cannabis manufacturers, cultivators, retailers, and mezzo-businesses. Mezzo-businesses can be involved in multiple stages of the cannabis supply chain, such as cultivation, manufacturing, and retail sales.

The lottery happened on a live stream as eager applicants waited for the results one by one. In total, 249 licenses were awarded. Here's the breakdown:
- 50 licenses for cultivators
- 24 licenses for manufacturers
- 100 licenses for mezzo-businesses
- 75 licenses for retailers
Next Steps for License Winners
The randomly selected applicants must now complete final steps. These include background checks, providing a signed labor peace agreement with a bona fide labor organization, securing a site location with local approvals, and submitting final business plans to the Office of Cannabis Management.
The OCM will conduct one more lottery for cannabis retailer licenses on July 22. This round will also give social equity applicants not selected in the first lottery a second chance.
Minnesota’s Slow Path Compared to Other States
Historically, it takes about 17 months for states to roll out recreational marijuana. In Minnesota, recreational cannabis became legal on August 1, 2023. Now, 22 months later, things are finally coming together. For comparison, Vermont holds the record for the slowest rollout at 57 months. If current trends hold, Minnesota will end up being the third slowest in the country.
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