Minnesota’s Illegal Cannabis Market Remains a Concern Despite Legalization Efforts
Despite Minnesota’s legalization of recreational marijuana in August 2023, the state is still grappling with a significant illegal cannabis market. According to a recent report by the Minnesota Office of Cannabis Management (OCM), over 199 pounds of illicit cannabis flower were found at 134 sites across the state between January and October 2024, valued at approximately $607,000. This amount was voluntarily destroyed by businesses upon inspection.
The OCM has identified several challenges in addressing the illegal market, including the practice of “gifting” cannabis with other purchases, online sales, mobile delivery services, and the sale of cannabis at public events. Four business entities were fined $10,000 each in civil penalties.
The state’s licensing process for legal cannabis dispensaries has been delayed, with a Ramsey County judge halting the pre-approved licensing lottery last November due to a lawsuit filed by denied applicants. The OCM still lacks a permanent director, with interim head Charlene Briner leaving the role earlier this month and being replaced by Eric Taubel, who had served as general counsel at the cannabis department.
Recreational cannabis sales are not yet legal, leaving home-grown marijuana as the only option for consumers. The OCM has reported that 40 percent of Minnesotans consume cannabis daily or almost daily, with an average of 24 grams obtained within the past month. This suggests a robust market for cannabis-related businesses.
The OCM has opened the window for verification of social equity applicants, with a deadline of January 30. A revamped timeline now puts the general licensing lottery between May and June, tentatively. The agency’s report highlights the need for continued efforts to address the illegal cannabis market and promote a regulated and safe industry.
