02-17-2025
The state of Minnesota starts accepting cannabis business licenses Tuesday.
Why it matters: How the process goes will determine when dispensaries and other parts of the state's new legal cannabis market get off the ground.
The big picture: Minnesota legalized recreational pot in 2023, but state-licensed stores and grow operations have yet to launch.
Catch up fast: Hopes of an early 2025 debut were dashed after the state scrapped plans for an earlier preapproval process for social equity applicants amid a court challenge.
Gov. Tim Walz said last week that he believes the state is still on target for opening stores sometime this year.
What to expect: State officials expect to issue the licenses sometime in May or June, following lotteries for eligible applicants run by the Office of Cannabis Management.
Proposed businesses, which include cultivators, retailers and testing facilities, have until March 14 to get their applications in.
Yes, but: It could take a few more months for cannabis retailers to actually open, as licenses are also needed to grow the crop for state-approved dispensaries.
Leili Fatehi, a cannabis consultant who helped draft the legalization law, tells Axios any retail launch this year would likely be at a "very small scale because there's just not going to be enough supply."
Threat level: Expected litigation over this application process could further delay the timeline, Fatehi cautioned.
Reality check: More dispensaries will open across the state soon regardless of how the state licensing process shakes out, thanks to compacts allowing tribal nations in Minnesota to launch their own off-reservation stores.
That head start — which follows the creation of four existing dispensaries on tribal land — may discourage some non-tribal businesses from applying for state licenses over fear that they'd be at a competitive disadvantage, Fatehi said.
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