The cannabis industry in Minnesota has entered a transformative phase in 2025, with major developments in licensing rules and processes shaping the landscape for dispensary owners, cultivators, and other cannabis entrepreneurs. Whether you’re an established operator or looking to break into the market, understanding the Minnesota cannabis licensing updates is critical for success.
This blog walks you through the key updates, what they mean for your business, and how to prepare for the opportunities ahead.
A New Era for Cannabis Licensing in Minnesota
Minnesota legalized adult-use cannabis in 2023, but the rollout of business licensing has taken time. After months of drafting, public hearings, and legal reviews, the state’s Office of Cannabis Management (OCM) finalized the licensing rules in early 2025. This year marks the first time that the state is fully issuing licenses for adult-use cannabis businesses, a huge step forward in building a regulated, equitable market.
On June 5, 2025, Minnesota held its first lottery draw for cannabis business licenses, awarding 249 pre-approval licenses across categories like cultivation, manufacturing, retail, and mezzo businesses. These licenses are just the start of a phased process that includes inspections, site approvals, and final licensing.
For prospective operators, now is the time to take action, either to prepare for the second licensing lottery, or to begin building compliant operations.
What the June 2025 Lottery Means
The lottery process is one of the most notable Minnesota cannabis licensing updates this year. Due to high demand for a limited number of licenses, the OCM implemented a two-lottery system:
- One for social equity applicants, such as individuals impacted by past cannabis enforcement.
- One for general applicants.
As reported by the Fox21 local news, during the first lottery, over 800 applicants entered for a chance to win one of the 249 available pre-approval licenses. The licenses included:
- 38 for retailers (dispensaries)
- 38 for cultivators
- 38 for manufacturers
- 35 for mezzobusinesses (which allow for multiple verticals)
- The remainder for delivery, testing, and other roles
These pre-approval licensees must now complete several additional steps like zoning and site compliance, background checks, and facility inspections, before receiving their final operational license.
If you didn’t get selected this round, don’t worry. A second lottery is scheduled for later this summer, meaning more chances for new cannabis licenses for Minnesota operators are on the way.
Understanding Minnesota Cannabis License Requirements
Before applying or reapplying for a license, you need to understand the Minnesota cannabis license requirements established by the OCM. These requirements are strict, designed to promote safety, transparency, and fairness across the market.
General Requirements for All Applicants:
- Entity Formation: You must be a registered business (LLC, Corp, etc.) in good standing.
- Real Estate: You must have a site that complies with local zoning laws and state setbacks.
- Background Checks: Applicants and key personnel must pass state criminal and financial background checks.
- Labor Peace Agreements: These agreements with labor unions are mandatory for certain license types.
- Business Plan & Operating Procedures: A detailed business plan is often required, including standard operating procedures (SOPs), security plans, and financial projections.
- Social Equity Verification: If you’re applying as a social equity applicant, you must submit supporting documentation and pass an eligibility screening process.
Staying organized and working with experienced consultants or service providers can dramatically improve your chances of success.
License Types Available in 2025
As part of the Minnesota cannabis licensing 2025 rollout, the state is offering several license types. These are divided into capped and uncapped licenses:
Capped Licenses (Lottery-Based):
- Cannabis Cultivator
- Cannabis Manufacturer
- Cannabis Mezzobusiness (allows cultivation, processing, and retail under one license)
- Cannabis Retailer (Dispensaries)
Uncapped Licenses (Standard Application):
- Wholesalers
- Delivery Services
- Testing Laboratories
- Microbusinesses (for social equity or smaller-scale operators)
Those interested in cannabis dispensary licensing in Minnesota will need to apply for a Retailer or Mezzobusiness license and pass through the lottery system.
Opportunities for Social Equity Applicants
Minnesota has made social equity a central part of its cannabis program. The goal is to provide meaningful opportunities for individuals and communities disproportionately affected by past cannabis laws.
To qualify for the social equity lottery, you must meet at least one of the following:
- Have a past cannabis-related conviction
- Be a military veteran
- Live in a low-income area or area of high enforcement
Those who qualify get priority placement in the first lottery, and if they are not selected, they are also eligible to enter the general lottery pool. This dual-chance structure is one of the more progressive aspects of the Minnesota cannabis business licensing system.
What If You Didn’t Win a License?
If you weren’t selected in the June lottery, you still have multiple paths forward:
- Apply for Uncapped Licenses: Roles like wholesale or delivery aren’t subject to lotteries.
- Enter the Second Lottery: The OCM has already announced that a second draw will be held this summer.
- Focus on Compliance: Review the feedback or request for more information (RFMI) from the OCM and revise your application materials.
- Partner with Existing Licensees: Consider investment, management, or supply agreements with those who have won licenses.
The cannabis market in Minnesota is still in its early stages. Being prepared, persistent, and compliant will pay off long-term.
How to Open Dispensary in Minnesota: Step-by-Step
If your goal is to open a retail cannabis location in Minnesota, here are the basic steps you should follow:
- Form a Legal Entity: Set up your business as an LLC or corporation with the Minnesota Secretary of State.
- Secure a Location: Find and lease a property that complies with local zoning laws and state restrictions (such as minimum distance from schools or parks).
- Prepare a Detailed Business Plan: Include a security plan, community impact statement, financial model, and compliance strategy.
- Apply During the Lottery Window: Make sure all documents are submitted completely and accurately.
- Complete Background Checks & Final Licensing: Once preapproved, you must pass criminal background and site inspection checks before receiving your operational license.
- Launch Your Business: Work with vendors like Cure8 to set up POS systems, surveillance, and IT infrastructure.
For a more detailed checklist, you can check our blog on How to Open a Dispensary in Minnesota.
How Cure8 Can Help
At Cure8, we specialize in helping cannabis businesses meet compliance, launch quickly, and scale securely. Whether you’re preparing your license application or building out your retail space, our team can support you with:
- IT setup and management
- Security camera and access control systems
- Compliant POS system installation
- Ongoing tech support and monitoring
We’ve supported cannabis businesses across the U.S. and Canada, and we’re here to help you navigate Minnesota’s evolving regulations with confidence.
Final Thoughts
The Minnesota cannabis licensing updates of 2025 represent both a challenge and an opportunity. With finalized rules, expanded license availability, and a dual-lottery system in place, the state is opening the door for hundreds of new cannabis entrepreneurs, but only for those who are prepared.
Whether you’re eyeing a dispensary, a grow operation, or a cannabis delivery service, now is the time to take your next steps. Review the new cannabis licenses Minnesota is offering, get your documents ready, and partner with a trusted provider like Cure8 to ensure your business is set up for long-term success.
