MCW, a Seminole Indian-owned finance company led by former Seminole Chairman James Billie and shareholders of Hard Rock International and Seminole Gaming, has partnered with Las Vegas-based cannabis investment and advisory firm Electrum Partners to help tribes open cannabis businesses. “Wherever it’s legal, that’s where we’re going, where the other Native Americans are,” said Billie, who’s known for his roles in high-stakes bingo and tribal gaming rights.
The partnership will leverage the tax and zoning benefits of tribal sovereign land rights to launch a lucrative, legal cannabis industry for Indian country. Citing New Frontier Data claiming the growing cannabis industry will exceed $21 billion in annual sales in the U.S. by 2020, Billie said, “It’s bigger than bingo and our gaming heritage, and, as the fastest growing industry in the United States with estimated value in the tens of billions, we are bringing the benefits of our tribal sovereignty to the cannabis industry and the cannabis industry leadership is partnering with us to enable the next huge economic development opportunity for the Native American community.”
Medical marijuana is legal in 29 states and D.C. and recreational marijuana is legal in eight states. MCW and Electrum Partners will help tribes navigate the legal complexities to produce both, and to capitalize on related cannabis industry opportunities. Asked if the partnership will grow marijuana on Seminole tribal land, Billie said Florida permits medical marijuana but the laws are too restrictive.
Electrum Partners founder, investment banker Leslie Bocskor, said, “The real issue isn’t the money. The real issue isn’t the business. The real issue is the structure that makes sure you do this in a way to make sure you don’t have an issue from a regulatory perspective.”
Bocskor said he will initially invest $25-$50 million to establish the tribal cannabis business, and increase his investment to $300 million within three years. As a Native-owned business operating on tribal lands, MCW has the financial advantages of functioning in a tax-free environment with limited liability, plus ease of permitting and zoning. Tribes will gain valuable connections to networks within the cannabis ecosystem by collaborating with MCW and Electrum. “Life is all about relationships. MCW has the right relationships in Indian country. Electrum Partners has the right relationships in the business world, and collaboration of the mutual relationships will produce phenomenal results,” Billie said.
Billie served as Seminole tribal chairman for a total of 28 years, including 22 years from 1979 to 2001— the “longest tenure of any elected leader in the Western Hemisphere, other than Fidel Castro,” the Miami Herald said. He again served as chairman from 2010 through September 2016, when the Seminole Tribal Council voted 4-0 to remove him due to “various issues with policies and procedures of the chairman’s office.” An award-winning documentary, “Wrestling Alligators,” released in 2016, details Billie’s life, from a youthful alligator wrestler, to his Vietnam military service, to his Seminole Tribe leadership.
