President Donald Trump’s pledge to protect the marijuana industry where it has been legalized by states created a buzz about the future of the industry at the Indian Gaming Tradeshow & Convention.
During a session Thursday morning entitled The Business & Politics of Cannabis – A Tribal Point of View, tribal leaders and others representing tribes in their pursuit of the pot business expressed relief that existing operations may now be safe from federal involvement, while those who are considering entry into the businesses can move forward with their plans with more confidence.
In January, U.S. Attorney General Jeff Sessions rescinded federal policy that allowed states to legalize cannabis while pushing federal prosecutors to crackdown on marijuana in states where it is already legal.
The moves represented a 180-degree turn from the Obama Administration’s position on cannabis and rattled the nascent $10 billion cannabis industry currently operating in eight states and Washington, D.C., according to Dave Vialpando, executive director of the California-based Tribal Cannabis Regulatory Agency.
The NIGA session was initially intended to discuss the potential showdown of tribes and states versus the federal government on the legality of cannabis and hemp, but Trump’s newly-revealed position provided some optimism such a showdown won’t happen.
Last Wednesday, Trump said he would support legislation that would protect the marijuana industry in states where it has been legalized. Republican Sen. Cory Gardner of Colorado said he got assurances on the matter directly from Trump, who has sent mixed messages about cannabis since his campaign – first stating he would respect the rights of states and later being directly critical of marijuana legalization.
Marijuana is fully legal in eight states, including Nevada, and another 24 states allow some form of its use. Gardner is drafting legislation to keep the federal government from interfering in marijuana markets in areas where it is legal.
The Puyallup Tribe of Puyallup, Washington is one of the tribes that runs a pot shop. Their chairman of the tribal council, Bill Sterud, recently went to Washington, D.C., to meet their congressional delegations and other advocates for marijuana legalization.
“Everybody we talk to is all for the industry,” said Sterud, who spoke about marijuana’s use in pain management and how much safer it is than opiates. That said, he added that no one is sure if Trump will keep his current position or change his mind.
Benny Tso, chairman of the Las Vegas Paiute Tribe, another tribe that operates its own pot shop, said tribes should pursue the opportunity in states where it is legal.
“You have consultants that are out there looking (out) for themselves,” Tao said. “I would say about nine in ten consultants are selling snake oil, (saying) that you can do this and do that, which is not entirely true. We have to abide by our own law and states’ codes.”
Tso recommended that tribal officials keep local, state and federal officials informed about how the tribes are pursuing marijuana sales.
“It’s not like we are asking them permission to do that… we are politely telling them what we are doing so they are aware,” Tso said.
Tso said he’s excited about the industry’s future.
“The industry is really in its infancy now,” he said. “There has been progression that has been made since it started, but we are still changing diapers in this industry.”
Tso related his personal view of marijuana sales, saying that in his opinion it’s “… providing medicine for people to deal with their ailments… that is better than taking opioids.”
Eli Parris, on the panel representing the Nuwu Cannabis Marketplace in Las Vegas, credits the two Indian tribes for helping pave the way for the industry. It’s already a billion-dollar industry in both Washington and Nevada.
“There’s a roadmap laid out on the right way to do tribal cannabis, and these gentlemen blazed a trail,” Parris said.
If done the right way, the industry is ripe for economic development and diversification, Parris said. But, he said, it’s not easy and takes a lot of time, work and effort.
“There is real economic development potential (in this), even for rural tribes,” Parris said. “We have partnered with a tribe in North Nevada that has the largest outdoor grow in America. It’s not only urban areas that do well in cannabis. What we are seeing is only the tip of the iceberg. In the state of Washington, cannabis sales (are now) higher than hard alcohol, and the industry has only been around for two years. And there is no demographic split. The demographic is everyone that comes in the store. There is no stereotype. It is the future.”
