Minnesota Prepares For Historic Social Equity Lottery With 1,817 Applications For 280 Cannabis Licenses, Mostly Vets

In Minnesota, thousands of applicants will be competing for social equity licenses as the Office of Cannabis Management (OCM) prepares for its first-ever lottery to distribute licenses.

These licenses will grant 280 fortunate winners the ability to grow, process, and sell cannabis, selected from a pool of 1,817 pre-applicants.

Veterans Lead The Charge

Military veterans and individuals with prior marijuana convictions make up the majority of those qualifying for social equity status under Minnesota's new cannabis law, according to MinnPost. This designation offers them the first opportunity to enter the industry—a crucial step for those unfairly impacted by the “war on drugs.”

A significant factor in the high number of social equity applicants is a change made by Minnesota regulators in March 2024. The state expanded its cannabis law to include all military veterans in its social equity program. This amendment significantly increased the pool of eligible applicants, with an estimated 327,000 Army veterans residing in Minnesota.

Between June 24 and July 10, 3,144 individuals sought social equity verification. Nearly three-quarters of the individuals who requested social equity status verification received certificates. Of all certified applicants, 923 are military veterans, accounting for 39% of the total applications.

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The Race For Licenses

The most sought-after licenses are for cannabis retail, microbusinesses and mezzobusinesses in Minnesota.

Since Minnesota's law doesn't require residency, a diverse pool of applicants has emerged. Notably, regulators couldn't exclude out-of-state applicants, leading to only 802 of the total applicants, or 44%, coming from Minnesota residents. Naturally, the OCM will need to monitor for potential predatory practices.

Read Also: Minnesota Cannabis Update As Industry Prepares To Launch Retail Sales

Under the current framework, cannabis businesses can hold only one license per category. While most licenses will be distributed through the lottery, some categories—such as cannabis wholesaler, transporter and testing facility—have fewer applicants than available licenses, eliminating the need for a lottery in those cases.

As the OCM finalizes the rules for the lottery, social equity applicants are getting a head start by securing financing, business structures and locations.

Lottery winners will prepare their businesses for the official rollout in spring 2025, joining pre-approved license holders who are allowed to start growing earlier. This phased approach is designed to ensure a smooth industry launch and adequate product availability when dispensaries open.

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