Minnesota’s June 5 Cannabis License Lottery: What You Need to Know

Minnesota is on the verge of a significant milestone in its emerging cannabis industry. The state’s Office of Cannabis Management (OCM) has announced that it will hold its first-ever cannabis business license lottery on June 5, 2025. This lottery will determine the initial wave of state-licensed cannabis operators for all limited licenses in Minnesota, making it a pivotal event for aspiring cannabis business owners.

Licenses Being Awarded

The June 5 lottery includes licenses for all Minnesota adult use cannabis licenses with maximum number of available licenses imposed by law, including cannabis cultivators, manufacturers, and mezzobusinesses (vertically integrated operations essential to the supply chain). In addition, a separate lottery on the same day will select cannabis retailer licenses exclusively from social equity applicants, which the OCM hopes will help preserve some of the “first-mover” advantages that the legislatures intended to provide social equity candidates. This two-part drawing is designed to jump-start Minnesota’s legal cannabis market while honoring the state’s commitment to social equity.

Cannabis Cultivator Licenses

• 50 total licenses
• 25 designated for social equity applicants
• 96 applicants

Cannabis Manufacturer Licenses

• 24 total licenses
• 12 designated for social equity applicants
• 83 applicants

Cannabis Mezzobusiness

• 100 licenses available
• 50 designated for social equity applicants
• 273 applicants

Cannabis Retailer

• 150 licenses available, with 75 designated for social equity applicants
• Over 850 aspiring retailer applicants
• Only social equity applicants are eligible for the first round of retailer licenses. A second lottery for remaining retail licenses—including general and unselected social equity applicants—will occur in July. This staggered approach is designed to provide social equity applicants with a head start in launching dispensaries, as outlined in the state’s legalization framework.

These four categories—cultivator, manufacturer, mezzobusiness, and retailer—are considered “limited licenses,” meaning the law caps how many the state can issue. These limits help manage the pace of the market’s rollout. Other license types, such as microbusinesses, testing labs, wholesalers, transporters, delivery services, and combined medical cannabis businesses, have no statewide cap and are not subject to the lottery. Instead, those are being reviewed and approved on a rolling basis by dedicated OCM teams.

All eyes are on the June 5 drawing and the foundational licenses that will establish Minnesota’s legal cannabis infrastructure—from cultivation and processing to retail.

Timeline: Key Dates and What Comes Next

With the application phase starting, Minnesota’s cannabis licensing timeline is hitting its most critical stages. Below is a summary of key dates and what applicants and stakeholders should expect going forward:

• May 2025 – Application Reviews and Notifications: By the end of May, the OCM will have completed its application review process and notified all eligible applicants.
• June 5, 2025 – License Lotteries: OCM will livestream the license lotteries on its YouTube channel. Winners will be announced live and posted online after each drawing.
• Post-Lottery (June 2025) – Provisional License Awards: Lottery winners will receive preliminary approval and must complete any outstanding requirements to receive their official license. This process may take several weeks to a few months.
• July 2025 – General Retailer License Lottery: Remaining retail licenses will be awarded through a second lottery open to all qualified general applicants, and any social equity applicants not selected in June.
• Late 2025 – Market Launch: Licensed businesses can begin operations once final approvals are in place. The first adult-use cannabis dispensaries are expected to open by late 2025, with a gradual rollout anticipated.

With the lottery approaching, prospective cannabis operators should be ready to move swiftly. If selected, prompt action will be essential to complete the final licensing steps and bring your business plan to life. If not selected, remember that this is only the beginning of Minnesota’s legal cannabis journey. Additional opportunities lie ahead as the market evolves.

Staying informed, adaptable, and engaged will be key to success. As Minnesota builds a legal, equitable, and sustainable cannabis industry, those who are prepared will be well-positioned to thrive in this promising new market.

We’re excited that Minnesota will soon be issuing cannabis business licenses and look forward to supporting those pursuing opportunities in this emerging market.