New York cannabis regulations are in limbo. But the pot industry is booming on reservations.

There are questions about how the tribes are procuring the marijuana, how it may ultimately be regulated and whether the tribes will reach a compact with New York to tax sales.

SALAMANCA, N.Y. — In this small town in western New York, nearly 20 marijuana dispensaries have opened up in just the last few months.

Located on the Seneca Nation of Indians’ reservation, the shops sell weed from behind the counters of gas stations, in roadside sheds and on Main Street storefronts, all without a license to do so.

The proliferation of the shops has beaten New York’s own plans to open dispensaries after the state Legislature legalized recreational marijuana last year.

State officials said it is legal for the tribes across New York to sell marijuana before regulators have adopted their own rules because the tribes have sovereignty.

Therefore, tribal governments have been able to develop and implement their own rules and regulations around retail sales and cultivation of marijuana, outpacing the statewide plans and reaping the financial benefits. New Yorkers on the other hand must wait until the state finishes developing regulations in the Marijuana Regulation and Taxation Act — with regulated sales expected before year’s end.

“There’s a considerable amount of money to be made in the industry, especially with New York lagging behind,” tribal lawyer Lee Redeye said. [Read More @ Politico]