The Seneca Nation is just one of many Native American tribes that have entered the cannabis business
The growing acceptance and legalization of cannabis present another frontier for tribal economic diversification . As the industry blooms , Native American tribes are actively in the mix seeking opportunities across the sector , from cultivation and processing to distribution and retail operations .
The Navajo Nation , whose territory extends to three states in the U . S . Southwest , has a large and expanding solar power operation . Phases 1 and 2 of their Kayenta Solar Facility generate enough clean energy to power 36,000 homes and business across the Navajo Nation .
Kayenta is owned by the Navajo Tribal Utility Authority ( NTUA ), which also has a business relationship with the Salt River Project ( SRP ), a Phoenix-based public power authority to which it provides power . Together , NTUA and SRP are undertaking a new solar farm near Cameron , Arizona . Following the success of Kayenta , the tribe also launched the Red Mesa Tapaha Solar Farm in Utah , a 70-megawatt , 500-acre project . Together , the Kayenta and Red Mesa projects are expected to generate $ 20 million in wages and more than $ 35 million in revenue over their lifetimes to the Navajo Nation .
Cannabis : Cultivating a New Industry
The growing acceptance and legalization of cannabis present another frontier for tribal economic diversification . As the industry blooms , Native American tribes are actively in the mix seeking opportunities across the sector , from cultivation and processing to distribution and retail operations .
Some see cannabis as the second coming of gaming , offering sovereign tribal nations potential market advantages like the ability to offer products that for regulatory reasons may otherwise not be available in the state and locations near border states where cannabis sales are more restricted .
In New York , where the Shinnecock Indian Nation has tried and failed for years to establish a casino project on their 1,000-acre territory near Southampton , the tribe has found less resistance and more success developing the region ’ s first adult-use cannabis dispensary — Little Beach Harvest . The Shinnecock Nation has partnered with TILT Holdings , a cannabis development and solutions provider , to build a 5,000-square-foot shop on tribal grounds with future plans for a wellness and consumption lounge as well as cultivation .
Meanwhile , the Seneca Nation of Indians — a tribe with considerable gaming experience in New York — sees cannabis as a way to continue to grow revenue and diversify in the casino sector as well as outside of it . More than 20 years after opening Seneca Niagara Casino , the resort footprint this year evolved to include the tribe ’ s own 2,500-square-foot retail operation called Nativa Cannabis .
Seneca leadership expects cannabis sales in Niagara Falls will serve as another draw for visitors to the area , and describe Nativa Cannabis as the “ first step ” in a larger plan to increase the nation ’ s investment in the growth and distribution of marijuana products .
Elsewhere , the Eastern Band of Cherokee Indians ( EBCI ) has been perusing a vertically integrated cannabis model out of the gate . Over the course of the past two years , the EBCI tribal council has taken measures to authorize the growth , sale and use of medical marijuana on its lands , simultaneously creating the first legal cannabis boundary in the state of North Carolina and a home base for their cannabis venture , Qualla Enterprises . Presumably building off their gaming expertise , EBCI established a Cannabis Control Board to oversee the licensing process for all phases of the venture .
Meanwhile , Qualla ’ s first priority was cultivation on an industrial scale within the tribe ’ s 57,000-acre Qualla Boundary territory in western North Carolina . Harvesting was reported in November of last year , and with their head start against state legalization efforts , the tribe seemed poised for success .
Recently , however , progress has stalled . Following passage of a resolution committing an additional $ 64 million to the effort , EBCI Principal Chief Richard Sneed vetoed the decision , ultimately requesting a forensic audit of the tribe ’ s initial $ 31 million investment . In addition to other concerns , Sneed worries the funding could jeopardize the tribe ’ s casino business due to federal restrictions on how tribes can spend gaming revenues .
Conclusion : A Sustainable Economy
The gaming industry ’ s success has undoubtedly paved the way for Native American tribes to exercise greater control over their destinies . It has allowed them to invest in their communities ’ economic and social welfare , laying the groundwork for future growth .
But tribes are nothing if not resourceful , and their diversification efforts have developed well beyond gaming and hospitality . We work closely with many tribes and their economic development arms to advance opportunities both inside and outside the world of gaming .
Tribes are leveraging their capital to venture into diverse sectors , from those outlined here to health care , tech , retail and more . Another particularly successful line of business for tribes has been government contracting . The advantages that tribes have in the bidding process allow their contracting arms to win considerable contract volume , providing jobs and reliable , recurring income for their people .
These strategic investments and careful planning are breaking the cycle of dependence , creating sustainable economic opportunities , and fostering cultural preservation . As these tribes diversify their business activities , they forge a path for long-term economic stability , cultural revitalization , and the empowerment of future generations .
Chris Irwin is vice president , Native American and interactive services for The Innovation Group .
28 Global Gaming Business AUGUST 2023