Dozens of lucky cannabis industry hopefuls got a big boost Thursday to open their business, two years after Minnesota legalized marijuana for recreational use. 

The Office of Cannabis Management held a lottery for some of the license types with limited quantities under state law, including for retailers and cultivators. Applicants were pre-screened to join the lottery by the new state agency tasked with oversight of the new industry, and 249 were selected.

Three times as many were eligible for the drawing. Eric Taubel, interim director of OCM, said those chosen will not officially get the license until they check off additional boxes, like passing a criminal background check, entering a labor peace agreement, negotiating with local governments for brick and mortar space and clearing an inspection. 

Still, the lotteries marked a significant step forward for a market that has not yet launched although it has been legal to smoke cannabis and grow plants at home since 2023.

“We know that as soon as we finish this lottery, many of these applicants will start the hard work of getting ready to open those cannabis stores and building the cannabis market,” Taubel told reporters ahead of the lottery Thursday morning. “Those applicants that win will receive information from the office next week about what their next steps are and what they need to do to accomplish it.”

But Taubel tempered expectations about the timeline for Minnesota to see a well-established marketplace because Minnesota’s approach focused more on a craft industry with smaller businesses. 

So even with compacts with Tribal Nations that can already grow and sell cannabis on their reservations, supply will not initially keep up with demand and that it will also take time to scale. 

Growing and manufacturing can take several months. Some other license types, like wholesalers and testing facilities were not capped under state law, so a lottery was not necessary. They already found out if they received the greenlight to move forward.

“The reality is that as we launch the first licenses in the coming weeks, we’ll start to see new stores, new cultivators and new manufacturers shortly, but because of that deficit, it will take a while until the market reaches full maturity,” he said.

Nick Rahn, owner of the Warrior’s Garden, a hemp-derived edibles store in St. Paul, said the long road to get to Thursday’s lottery was exhausting and frustrating. But when his number was called out on the livestream, he cried tears of joy.

“I don’t see why it should have taken this long,” he said, noting other states that have had retail sales sooner. “But today’s the first step towards getting cannabis on shelves and I’m just excited.

He needs to renovate his existing store to comply with regulations, among other additional steps, in order to re-open as an adult-use cannabis dispensary. But his target date is August 1 and he recognizes the supply chain challenges. 

“We’re all kind of wondering the same thing: where are we going to get our product?” Rahn said.

• Marijuana
• Minnesota
• Cannabis
• Recreational Marijuana