A critical goal of Minnesota's first lottery for people seeking cannabis business licenses was to give a select number of cultivators the opportunity to immediately begin growing, helping establish a supply chain of marijuana ahead of next year's retail market launch.
That goal is now in jeopardy after a Ramsey County judge blocked the state's Office of Cannabis Management (OCM) from holding the lottery in response to lawsuits filed by applicants, who said they were unfairly denied entrance. Judge Stephen Smith sent the recently filed legal challenges to the Minnesota Court of Appeals for further review Monday delaying the lottery indefinitely.
The lottery the OCM had planned to hold Tuesday for social equity applicants seeking license preapproval was meant to give veterans, residents of high-poverty areas and people negatively affected by cannabis prohibition a head start in the new industry. With license preapproval, aspiring cannabis business owners would have the certainty they need to secure investment, commercial real estate and local zoning approval. Preapproved cultivators would be allowed to start building the state's cannabis supply chain.
The lottery's postponement, however long it may be, delays cultivation from starting. That could lead to less supply for retailers when the market opens next year.
Read more at The Minnesota Star Tribune