Native American Tribes Expand Cannabis Retail Presence Across the United States Amid Industry Growth

Native American tribes have steadily expanded their footprint in the legal cannabis industry over the past year, asserting themselves as major players in both emerging and established state markets. As of April 2025, tribally owned cannabis stores have grown by 24% year-over-year, totaling 77 outlets across nine states. These stores are now owned by 59 different tribes, reflecting an 18% increase in tribal participation in cannabis retail since May 2024.

States like Minnesota and New York, which recently legalized adult-use marijuana, saw some of the most significant increases in tribally owned cannabis businesses. But even in mature cannabis states such as California and Washington, new tribal stores have continued to open, showing that growth opportunities still exist for sovereign nations within competitive environments.

Tribal Sovereignty Enables Unique Cannabis Regulations and Economic Flexibility

One of the defining advantages for Native American tribes entering the cannabis market is their legal status as sovereign nations. This gives tribes the authority to pass their own cannabis regulations—often independent of or even in contrast to those of the surrounding state. In some cases, tribal laws are more conservative, prohibiting marijuana use even in states where it is otherwise legal. In other instances, tribal laws are more permissive and allow tribes to offer cannabis products in places where state law does not.

An illustrative case is the Eastern Band of Cherokee Indians in North Carolina. They opened the Great Smoky Cannabis Co., the state’s only legal marijuana outlet, despite North Carolina not having legalized cannabis for either medical or recreational use outside of tribal lands. This move has positioned the tribe as a leader in a state otherwise closed to the legal cannabis market.

Washington and California Lead in Number of Tribal Stores While New Markets Surge

Washington leads the nation with 25 tribally owned cannabis outlets operated by 18 different tribes. That represents more than 60% of the state’s federally recognized tribes engaging in cannabis retail. California now ranks second with 15 stores operated by 12 different tribes, surpassing Nevada in the past year.

In newer markets like Minnesota and New York, tribes have capitalized on delays in state licensing to become first movers in cannabis retail. These states have struggled with bureaucratic rollouts, creating a vacuum that tribal businesses were quick to fill. With demand outpacing supply, tribal outlets became essential in meeting consumer needs, especially where state-licensed dispensaries remain nonexistent.

Tribes Help Stabilize Legal Markets During Delayed State Rollouts by Offering Regulated Alternatives

Tribes play a critical role in stabilizing legal cannabis access during periods when state systems lag behind public demand. In Minnesota, for example, the only adult-use cannabis stores currently operating are tribally owned. This has provided consumers with a safe and legal alternative to illicit dealers while the state works through its licensing process.

Though these early tribal entrants may temporarily enjoy limited competition, the benefits extend to the broader cannabis ecosystem. Regulated access helps undermine the illicit market, educates consumers on safe usage, and sets the stage for smoother integration once state-licensed stores come online.

Cannabis and Casinos: How Tribes Leverage Existing Infrastructure to Support Retail Growth

Many tribes have integrated cannabis retail into existing economic infrastructures, especially casinos. More than 80% of tribes operating cannabis stores also own gaming operations, and 27 of the 77 stores are located near casinos. This alignment not only boosts traffic but also opens up strategic cross-promotional opportunities—allowing tribes to diversify income streams while enhancing customer experiences.

Store sizes vary dramatically, with an average footprint of 4,600 square feet. Some smaller shops are under 1,000 square feet, while others—especially those adjacent to casinos or on tourism-heavy land—have grown into complexes exceeding 10,000 square feet.

New Concepts and Larger Facilities Reflect Tribal Leadership in Cannabis Innovation

Innovation is increasingly a hallmark of tribal cannabis enterprises. In California, the Sycuan Band of the Kumeyaay Nation has unveiled “Sessions by the Bay,” a 16,000-square-foot facility in partnership with the city of National City, near San Diego. The venue features not only a dispensary but also immersive art spaces, a restaurant, and a cannabis consumption lounge with live entertainment. It represents a new model for experiential cannabis retail.

Similarly, the Twenty-Nine Palms Band of Mission Indians has opened three Red Falcon Dispensaries in Coachella, Twentynine Palms, and Yucca Valley. Their Coachella location includes an on-site lounge with food, drinks, and an outdoor sports patio complete with televisions, blending lifestyle with retail in a dynamic new way.

Tribes Also Enter Cultivation and Manufacturing While Supporting Broader Tribal Commerce

Retail is only one part of the cannabis value chain where tribes are active. Many have invested in cultivation and manufacturing, either to support vertically integrated businesses or to wholesale products to other tribal or state-licensed enterprises.

For example, the Mille Lacs Band of Ojibwe is currently focusing on large-scale cultivation rather than opening a dispensary immediately. The White Earth Nation, which already operates a retail outlet, has begun selling its surplus cannabis products to other tribes in Minnesota. This has helped fill gaps for tribal retailers that lack their own grow operations.

White Earth Nation recently signed a compact with the state of Minnesota that allows it to open up to eight stores outside of its reservation, reflecting a growing partnership between tribal and state governments to extend legal cannabis access more broadly.

Some Tribes License Individual Members Rather Than Operating Government-Owned Stores

Not all tribes pursue cannabis through government-owned entities. Several have chosen to empower their members directly by establishing regulatory frameworks and issuing licenses for cannabis businesses.

The Saint Regis Mohawk Tribe in New York has licensed more than 20 cannabis retailers through its Cannabis Control Board. Similarly, the Oglala Sioux Tribe in South Dakota has permitted tribal members to launch cannabis enterprises, creating new avenues for economic self-determination while remaining under tribal regulatory oversight.

Future Outlook: More Tribal Participation, Market Expansion, and Policy Innovation Expected

Looking ahead, continued growth in tribally owned cannabis businesses appears likely. The cannabis industry remains in flux nationwide, with more states considering legalization and federal reform potentially on the horizon. Tribes are uniquely positioned to shape that future—not just participate in it.

Through sovereign governance, economic innovation, and regulatory independence, Native American tribes have become pivotal figures in the next generation of cannabis commerce. Whether through opening new stores, expanding cultivation capacity, or crafting immersive consumer experiences, tribal nations are not only diversifying their economies—they are redefining what success in the cannabis industry can look like.