Legal Settlement Restores Licensing Prioritization for Preapproval Lottery Applicants
On May 30, 2025, the Office of Cannabis Management (OCM) and Qualified Applicants for a Preapproval Lottery (QAPL) reached a settlement that restores key licensing advantages for businesses that were approved for the cancelled preapproval lottery.
This page outlines what was achieved through the settlement, what it means for applicants and the industry, and how those impacted can help sustain the effort that led to this outcome.
Background
The license preapproval lottery was created by the Minnesota Legislature as a one-time mechanism to give operationally ready social equity applicants a head start in the licensing process.
In November 2024, OCM cancelled the preapproval lottery following litigation brought by unsuccessful applicants. In response, Blunt Strategies organized a group of approved applicants to form Qualified Applicants for a Preapproval Lottery (QAPL)—a nonprofit created to challenge the cancellation and advocate for a fair resolution.
QAPL was represented by attorneys Alethea Huyser and Shantal Pai of Fredrikson & Byron, P.A., a Minnesota-based law firm with expertise in regulatory litigation and cannabis law. Their counsel was instrumental in both challenging the cancellation and negotiating a resolution that restores key protections for impacted applicants.
On May 30, 2025, QAPL reached a settlement agreement with the Office of Cannabis Management (OCM) that will ensure meaningful prioritization in the state’s licensing process.
What the Settlement Provides
Under the terms of the settlement:
Priority Processing: Applicants for both capped and uncapped license types who were approved for the preapproval lottery as of November 25, 2024 will now receive prioritization at every stage of the licensing process, including background checks, labor peace agreement reviews, plan of record approvals, and site inspections.
Application Preservation: Applicants for capped license types not selected in a 2025 lottery will have their applications carried forward into the next licensing round.
Partial Legal Cost Reimbursement: The state agreed to partially reimburse QAPL’s legal expenses, recognizing the legitimacy of the claims and the group’s constructive role in reaching a resolution.
Who This Applies To
If your business is among the 600+ applicants that were approved for the preapproval lottery in 2024—whether for a capped or uncapped license type—this settlement benefits you.
Not sure if you were on the approved list? Contact us at info@bluntstrategies.com and we’ll help you confirm.
How You Can Help
QAPL’s legal action was made possible by a small group of committed businesses who contributed time, energy, and funding on behalf of the broader community.
If you are one of the beneficiaries of this settlement, we invite you to contribute toward remaining legal costs and support continued advocacy to protect equity, transparency, and fairness in Minnesota’s cannabis licensing process.
To learn more or contribute, contact us at info@bluntstrategies.com