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Andrew Laine, a legacy market veteran, shares insights into New York’s cannabis industry, highlighting struggles with financial exploitation, red tape and real estate hurdles.
Andrew discusses the challenges of building a socially equitable market amid corruption and bureaucratic delays.
New York’s cannabis industry is a landscape that blends visionary ideals with a stark reality of red tape, predatory deals, and financial frustration. It’s a space where long-time advocates of marijuana reform race against time, regulators, and profiteers to carve out a legal niche.
Andrew Laine, Founder of Eyespot is a seasoned veteran of the legacy market. He saw the highs and lows of the industry long before it was a glimmer in the eyes of regulators. As one of the earliest applicants for a retail cannabis license in New York, Laine’s journey through the state’s nascent legal market offers a revealing glimpse into the state of the industry today— a mix of hope, obstacles, dedication and hustle.
“I always knew cannabis would eventually go legal,” Laine reflects, leaning back in his Greenpoint office. “It wasn’t a matter of if, but when. I wanted to be at the forefront of that change, to bring people safer, legal access to cannabis, and to build a space around it that felt like home.” For Laine, it’s never been just about the product. It’s about the community, the culture, and the promise of something better.
Fighting Bureaucracy and Halting Dreams
That vision hasn’t come easy and Laine is paying the price. His road to securing a retail cannabis license has been riddled with bureaucratic headaches, shifting regulations, and more than a few setbacks. His initial application for a Conditional Adult-Use Retail Dispensary License (CAURD) hit a snag early on—months of delays,multiple statewide lawsuits, paperwork nightmares, and a frustrating back-and-forth with state officials over background checks.
But the real kicker came when he secured a spot in Greenpoint and put in a separate application for what was supposed to be a fast track if you have a location under your control, only to be told his location was too close to another applicant’s proposed storefront; submitted over 6 months after his submission. “It’s an endless game of musical chairs,” Laine explains with a look of frustration on his face. “Regulations change, corruption comes to light, spaces fall through, and you’re constantly trying to keep up. It’s maddening.”
The Real Estate Gambit
The stakes only get higher when you factor in New York’s volatile real estate market, where landlords, investors, and even banks are suddenly seeing cannabis as the next big thing. But securing space isn’t as simple as it seems. In fact, it’s a minefield.
Laine’s own real estate saga unfolded like a bad dream. After securing what seemed like the perfect location in Greenpoint, he found out a year and a half later that the landlord had neglected to disclose a mortgage tied to the property. The lender, it turned out, prohibited leasing to a cannabis business. This of course did not stop the landlord from collecting a year and a half of rent while Laine was for regulatory approval to operate.
“It’s not just about finding a spot with a good square footage,” Laine notes.
“You’ve got to ask the right questions. You’ve got to dig deep into the details, because this market has a way of hiding risks in the fine print. If you’re not careful, you can waste months and a ton of cash on a space that’s never going to work.k Good luck getting that back! Who can afford it?.”
The real estate game, combined with the state’s intricate proximity rules, has made finding the right location a high-stakes gamble for many operators. But it’s just one piece of a larger puzzle.
The Financial Stranglehold, Predators Lurking in the Mist
While navigating the regulatory maze of delays is tough enough, Laine is quick to point out another growing issue: financial predators who are lurking in the shadows, waiting for vulnerable operators to fall into their traps. The promises of funding, mentorship, and “support” often come with devastating strings attached.
“There’s a lot of vultures in this game,” Laine says, his voice low. “You get operators who are struggling to raise enough capital or spent all their money waiting on the state to move the process along, and then you get these so-called investors who swoop in and offer funding—but with such terrible terms, it’s a trap. They’ll take up to 70% of your profits, sometimes even more, and leave you with barely enough to keep your business running.”
Laine isn’t alone in his criticisms. Industry insiders have pointed to major players, who have been accused of using predatory contracts to lock new cannabis operators into long-term, financially disastrous arrangements. In exchange for financial backing, the investor takes control of the business and walks away with most of the profits—leaving operators with little more than a title, a hollow sense of ownership and all the risk.
“You’re essentially a figurehead,” Laine says of the situation. “You can’t even make a decision without running it by them first. And even if you’re successful, you will barely see any of the profits.”
This deal with the devil mentality isn’t limited to a few. Many cannabis entrepreneurs are finding themselves forced into deals where they must give up a massive percentage of their revenue in exchange for short-term loans or resources— resources that often come with even higher costs than the loans themselves. These kinds of deals are forcing many operators to accept unfavorable terms just to stay afloat or out of desperation, and the result is a broken, exploitative system that does more harm than good.
The Culture of Cronyism
Perhaps even more insidious than the financial exploitation is the cronyism embedded in the cannabis industry. Despite its rhetoric about social equity, fairness, and community involvement, many operators feel that the true power in the space lies with those who have connections, not necessarily expertise.
Industry insiders point to Platform Advisors, a group run by former Office of Cannabis Management (OCM) staffers, as a perfect example. “They’ll lease you the property, but they’ll sublease and then charge you hefty management fees,” they explain. “It’s like they’re running a shell game— everything looks fine on the outside, but once you start doing the math, it’s clear you’re the one getting screwed.”
The insiders, those with deep pockets and insider knowledge, are often the ones reaping the rewards of New York’s cannabis boom, leaving smaller operators with few options but to play by their rules. This cronyism runs contrary to the promises of the legal market, which was supposed to level the playing field for communities most harmed by the War on Drugs. But, as these insidersLaine points out, that promise has been largely unfulfilled.
“The system is rigged for the well-connected. That’s the reality,” theyLaine says. “It’s a tough pill to swallow, but the truth is, a lot of the people who are supposed to be helping are the ones profiting off the backs of everyone else.”
The Future: Hope Amid the Chaos
Despite the grim outlook, Laine remains cautiously optimistic about the future of his business, Eyespot. The journey has been long, but his vision for the company hasn’t wavered. He’s determined to build something that goes beyond just selling cannabis. “Beyond not just a dispensary,” Laine says. “We want to be a community hub, a place where people can connect, learn, and get involved in something bigger than themselves. Cannabis has always been about community, and we’re committed to that.”
Laine’s optimism is rooted in the belief that change is possible, but he knows that it requires a fundamental shift in how the cannabis industry operates. Less bureaucracy, more transparency, and better access for small operators are all key if the market is going to live up to its potential.
“This industry is a marathon, not a sprint,” Laine concludes. “But if we stick it out and fight for what’s right, we can build something that actually helps people. We just have to be ready for the long haul.”
For more information on Andrew Laine’s journey and his vision for New York’s cannabis future, visit eyespotdirect.com.
