A Minnesota judge on Monday halted a planned lottery to award adult-use marijuana licenses after applicants who were denied access filed a lawsuit alleging the process lacked transparency and did not provide an appeals mechanism.
Ramsey County District Court Judge Stephen Smith made the decision following an hourlong online hearing, calling off the lottery that was set for Tuesday, according to MPR News. The state retains the option to appeal the ruling.
The Minnesota Office of Cannabis Management (OCM) warned before the hearing that postponing the lottery could jeopardize it entirely due to logistical and financial challenges, MPR News reported.
The lawsuit, filed by Cristina Aranguiz and Jodi Connolly on November 21, argued that the OCM acted in an “arbitrary and capricious” manner in rejecting their applications without explanation.
In a statement following the decision, Aranguiz called the ruling a win for equity and fairness. “Today’s ruling to pause the lottery is a victory for fairness, transparency, and accountability in Minnesota’s new cannabis industry,” she said. “It also shows that the court recognizes the importance of ensuring every qualified social equity applicant has an equal chance to succeed.”
Aranguiz, a first-generation American Latina entrepreneur, noted that her application met the state’s criteria and highlighted the challenges of starting a business in a new industry. “My interest is in making sure that social equity entrepreneurs can be successful, and their doors stay open for as long as they wish,” she added.
The OCM announced last week that roughly two-thirds of the 1,817 social equity applicants were disqualified for issues such as incomplete applications, submitting multiple entries, or failing to disclose true investors. The lottery was intended to narrow the pool to 282 participants.
