As the delayed process to license legal cannabis dispensaries continues, Minnesota is trying to keep a lid on its growing illegal cannabis market.

According to a 2025 report by the Minnesota Office of Cannabis Management (OCM), the agency found more than 199 lbs of illicit cannabis flower at 134 sites from January to October of 2024. That’s around $607,000 worth of flower voluntarily destroyed by businesses upon inspection.

Four business entities were fined $10,000 each in civil penalties.

“Additional challenges encountered by the office related to the illicit cannabis market include: the practice of businesses ‘gifting’ cannabis along with other purchases, online cannabis sales and mobile cannabis delivery services, peddler stands selling product at family friendly events like the Minnesota State Fair, and other large public cannabis events,” the report read.

Minnesota legalized recreational use of marijuana in August 2023 but has struggled to get business licensing on track. Last November, a Ramsey County judge halted the state’s pre-approved licensing lottery after a group of applicants who were denied access sued Minnesota’s cannabis office.

The state agency still does not have a permanent director. Earlier this month interim head Charlene Briner left the role and was replaced by Eric Taubel, who had served as general counsel at the cannabis department for the past year.

The sale of recreational cannabis is not yet legal. That means “the illicit cannabis market continues to play a role in cannabis consumption in Minnesota,” according to the OCM.

The only option for recreational use now is home-grown marijuana.

“Given the illicit nature of illegal sales of cannabis, the size of such a market is not able to be determined with complete accuracy or consistency,” said the state agency in the 2025 report.

Last week, the window for verification of social equity applicants was opened and has a deadline for Jan. 30. A revamped timeline now puts the general licensing lottery between May and June, tentatively.

According to a survey by the OCM on cannabis use, 40 percent of Minnesotans consumed cannabis daily or almost daily. Participants also reported obtaining an average of 24 grams of cannabis within the past month, which is slightly higher than the national average and comparable Midwest states — “suggesting a robust market for cannabis-related businesses.”