The Cannabis Economy in First Nations

Legalization and Sales in Aboriginal Communities

Adam Hopkins ’03 (B.A. Indigenous Studies)

If you take a drive through many First Nations in southern, central, and eastern Ontario, you’ll see an odd sight. Stores with names like “Smoke on the Water,” the blasphemous

“Peacemaker 420,” the obvious

“Medicine Wheel Natural Healing,” and the uninspired “The Weed Store.” It’s here where entrepreneurial pot sellers and the Indigenous economy make a weird intersection. One of the most high-profile examples of this can be found at the

Tyendinaga Mohawk Territory (TMT), a large First Nation community on the Bay of Quinte. Over 50 pot shops are currently operating in the community. Openly selling recreational marijuana to both

Indigenous and non-Indigenous people, the businesses remain open and largely unbothered by reserve, provincial or federal police. This is in direct contravention to provincial rules set in place after the legalization of pot this past fall. So, why is it that these pot shops were not shut down after legalization and how did so many pop up in such a short time? The chief of Tyendinaga,

R. Donald Maracle, is quoted as saying that since the local crown attorney has no interest in pursuing charges against the shop owners, they will remain unbothered, at least for the time being. This ambiguity largely has to do with the right of First Nations to determine their own laws and governance practices, a legal obligation outlined in the Royal Proclamation of 1763, which has largely been ignored by successive Canadian lawmakers.

To the uninformed eye (i.e., the majority of Canadians, who are largely unfamiliar with how businesses operate on reserves), it may seem as though most of these entrepreneurs have invested little in their ventures— maybe a modular trailer and some retail infrastructure. However, like any other entrepreneur, these owners have put a lot on the line and are arguably facing greater hurdles than most opening a business off reserve, where bank loans are easier to come by. The risks associated with opening a new business like a pot shop are similar in scope to any other new business. It requires drive, determination, creativity and grit to go out on your own and do something so out of the norm.

The potential income from one of these pot shops is staggering. It’s said that some of these businesses can bring in anywhere from $5,000 to as much as $15,000 per day. With the legalization of recreational marijuana now behind us, the risks associated with opening a pot shop outside of the provincial system increases. But most of these entrepreneurs continue to stay open. The income generated has the potential to lift, not just the owners out of poverty, but if done right, entire communities. There is a lot on the line. Many First Nation communities will soon be deciding their own approach on how to deal with pot shops that exist outside of the provincial system. Canadian municipalities have the ability to opt in or out of allowing pot shops in their jurisdiction. First Nations have the ability to set these rules, but will also have the added ability to tax or set fees. Upcoming local and regional plebiscites in Indigenous communities regarding the “pot economy” have the potential to affect the livelihood of Indigenous people for generations to come.