How Minnesota's Second Tribal-State Compact is Boosting the Adult-Use Cannabis Market

Image | adobe.stock/eyegelb

Second Tribal-State Cannabis Compact Signed by Minnesota Governor Walz

In a recent press release, it was announced that Minnesota Governor Tim Walz signed the second Tribal-state compact that was authorized under state statute (1). With the new agreement, the Mille Lacs Band of Ojibwe and the state of Minnesota will be able to work together to “promote a cooperative and mutually beneficial relationship to regulate cannabis and promote public health and safety,” (1). The Minnesota Legislature instructed the governor “to negotiate intergovernmental agreements—cannabis compacts—with Tribal Nations sharing territory with Minnesota to enhance public health and safety, ensure a lawful and well-regulated cannabis market, encourage economic development, and provide financial benefits to both the state and Tribal Nations,” (1).

“This is an exciting development in the rollout of Minnesota’s adult-use cannabis market,” said OCM Executive Director Eric Taubel (1). “The many newly licensed businesses preparing to open their doors to adult-use customers are eager to partner with Mille Lacs. This compact will open up unique opportunities that benefit the state, Mille Lacs, state-licensed businesses, and Minnesota cannabis consumers. We look forward to seeing these unique and innovative partnerships develop and flourish across the state.”

As Tribal-state compacts are signed, the press release stated that all compacts will be including commitments made to adhering consistency for consumers in the state’s cannabis market, data collection and analysis, and prioritization of public health and safety with product testing (1).

Adult-Use Cannabis Sales Beginning in the State

The Minnesota Office of Cannabis Management (OCM) announced in a September 16, 2025 press release (2), that retail adult-use cannabis sales were officially beginning in the state.

“We’re at a point where critical work streams have come together, allowing state-licensed retailers to begin selling adult-use cannabis products to customers,” said OCM Executive Director Eric Taubel (2). “We’ve seen immediate interest from state-licensed businesses to work with Tribal Nations to carry Tribally grown products on their shelves as they open their doors to eager customers.”

In August 2023, several Tribal Nations started opening both medical cannabis and adult-use dispensaries on land that was Tribally owned (1,3). On May 23, 2025, White Earth Nation officially opened the first cannabis dispensary located outside of Tribal lands (1,4). The Tribal-state compact signed in May 2025, helped create the framework which allowed for Tribal dispensaries to be opened in the state. As of June 18, 2025, the State of Minnesota has issued 37 business licenses which include 23 licenses that went to microbusinesses that have plans to “conduct retail cannabis sales,” (2). The press release mentioned that these businesses have been waiting to get started due to testing facilities, cultivators, and manufacturers needing to create a supply of products for customers to purchase. State-licensed retail businesses are now working with Tribal Nations such as, White Earth Nation and Mille Lacs Band of Ojibwe, to obtain tested and safe products at wholesale so that stores are able to supply for their businesses and meet customer demand. The first sales of Tribally grown cannabis flower was available for purchase on September 16, 2025 at Legacy Cannabis, a licensed microbusinesses that has partnered with White Earth Nation and is located in Duluth, Minnesota.

“These milestones reflect the diligent work of many people committed to growing an equitable and sustainable cannabis market in Minnesota,” said Taubel (2). “I look forward to seeing the market mature over the next few years as we continue to prioritize public health and safety, consumer confidence, and market integrity."

References

1. News releases https://mn.gov/ocm/media/news-releases/?id=705158 (accessed Sep 19, 2025).
2. News releases https://mn.gov/ocm/media/news-releases/?id=705993 (accessed Sep 19, 2025).
3. Colli, M. Medical Cannabis Program and adult-use cannabis sales launched by White Earth Nation https://www.cannabissciencetech.com/view/medical-cannabis-program-and-adult-use-cannabis-sales-launched-by-white-earth-nation (accessed Sep 19, 2025).
4. Colli, M. White Earth Nation opens first cannabis dispensary located outside of tribal lands in Minnesota https://www.cannabissciencetech.com/view/white-earth-nation-opens-first-cannabis-dispensary-located-outside-of-tribal-lands-in-minnesota (accessed Sep 19, 2025).