Post, the Red Lake Nation’s dispensary has seen success, with sales reaching $1.8 million in the first six months of operation
Native American Tribes Diversify Economies with Cannabis Businesses
As more and more states hop on the cannabis legalization train, a new trend is emerging – Native American tribes are investing in the industry and opening their own cannabis stores. And the numbers don’t lie – according to MJBizDaily, the number of tribally owned retailers has grown by a whopping 25% since January 2023. That’s a lot of green!
Tribal Cannabis Stores on the Rise
With legal adult-use cannabis becoming more mainstream, tribes are seizing the opportunity to boost their economies and increase revenue. And let’s not forget the unique benefits that come with being a sovereign nation – tribes can assert their sovereignty and get a head start in newly legal states. As Matthew Klas, a senior associate with Minneapolis-based national consulting firm KlasRobinson Q.E.D., puts it, “It’s a win-win situation.”
Tribal Cannabis Stores: Not Just on Tribal Lands
While many of these stores are located on tribal lands, not all of them are. Currently, there are 57 tribally owned dispensaries in nine states: California, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, South Dakota, and Washington. And these stores come in all shapes and sizes, with an average size of 4,300 square feet. That’s a lot of space for some serious cannabis business.
First-to-Market Advantage for Tribes
One of the major advantages for tribes entering the cannabis industry is the first-to-market advantage. With their own laws that may differ from state laws, tribes can offer more leniency or even ban cannabis sales and use within their territories. This gives them a leg up in newly legal states, as they can start selling cannabis before state-licensed businesses are even established.
Tribal Cannabis Stores: A Growing Trend
The data shows that Washington state has the most tribal retailers, with 23 stores operated by 18 different tribes. Nevada comes in second with 10 tribal stores owned by eight different tribes. And while most of these stores are located in states with legal recreational cannabis, there are a few exceptions. For example, South Dakota and North Carolina both have tribally owned dispensaries that currently only offer medical cannabis.
Tribal Dispensaries Fill the Gap in Minnesota
In Minnesota, where adult-use cannabis was legalized last year but retail establishments have yet to be licensed, tribal-owned dispensaries are filling the gap. The Red Lake Nation and White Earth Nation have already opened two dispensaries and have plans to open more in the future. And they’re seeing success – the Red Lake Nation’s dispensary has already made $1.8 million in sales in just six months, according to MinnPost.
So, it’s clear that Native American tribes are making their mark in the cannabis industry, diversifying their economies and seizing the first-to-market advantage. And with more and more states legalizing adult-use cannabis, we can expect to see this trend continue to grow.
