NY Monthly Puff: New York Cannabis CAURD Ruling Fines Gotham Buds
New York’s cannabis market spent October 2026 testing how far regulators will go. The New York cannabis CAURD ruling against Gotham Buds set a $35,000 penalty over ownership control, while the state set a November 5 opening for its first nursery license window. Flagship revenue slid 48% across seven months, and a Poughkeepsie dispensary lost its ability to sell.
Top Headlines This Month
- ⚖️ Gotham Buds fined $35,000 over CAURD control violations
- 📈 Flagship dispensary revenue falls 48% in seven months
- 📋 Poughkeepsie dispensary suspended amid owner’s federal charges
- 📋 Nursery license applications open November 5, capped at 50
- ⚖️ Board issues adult-use licenses over community objections
⚖️ NEW YORK: CANNABIS CONTROL BOARD FINES GOTHAM BUDS $35,000 OVER CAURD CONTROL VIOLATIONS
On October 1, 2026, the New York Cannabis Control Board adopted Resolution No. 2026-78, reaffirming its August 6, 2026 declaratory ruling that Gotham Buds LLC’s operating agreement violates the sole control and proportionality requirements that bind Conditional Adult-Use Retail Dispensary licensees. The board found that the justice-involved majority owner, Jeffrey Lopez, holds a 51% voting ownership interest but only a 14% financial interest while serving as Chief Operating Officer. The board imposed a $35,000 civil penalty and ordered Gotham Buds to submit a fully executed, revised operating agreement to the board and the Office of Cannabis Management within 90 days, curing the deficiencies named in the ruling. OCM cannot grant an extension of that deadline. If the company misses it, it owes a penalty equal to 5% of its 2025 sales on record with the office. A revised agreement that fails to establish substantial compliance triggers an additional penalty equal to 2% of 2025 sales, and each further 30-day period of noncompliance adds a penalty equal to 1% of 2025 sales.
If Gotham Buds has not reached substantial compliance within 180 days of the resolution, excluding days spent on office or board review, the board will require all interested parties to appear at the next regularly scheduled meeting, where it may move to suspend the dispensary’s CAURD license or exercise any other power under Cannabis Law Section 10. The board stated its findings provide guidance for other market participants on keeping justice-involved individuals in primary decision-making authority over the operations, obligations, and benefits of licensure, signaling how New York intends to police ownership structures across the CAURD program.
Source:
https://cannabis.ny.gov/ccb-resolution-2026-78
📈 NEW YORK: FLAGSHIP DISPENSARY REVENUE FALLS 48% OVER SEVEN MONTHS
Data published September 24 by Lit Alerts shows New York’s top cannabis retail locations have lost nearly half their revenue. Flagship dispensaries that generated $1.76 million per month in February fell to $918,000, a 48% decline across seven months. The analysis ties the drop to the Office of Cannabis Management approving more licenses, which pushed geographic density higher across the state. Lit Alerts frames the shift as market maturation rather than decline, with customers choosing nearby stores instead of traveling to the high volume megastores that defined the market’s early phase.
The report describes a widening split, with the top 80% of the market shrinking while the bottom 20% barely holds ground. That pattern signals that revenue is spreading across a larger base of stores rather than concentrating in a handful of standout locations, so the early model of reaching statewide sales through a few flagship sites no longer holds in New York’s retail market.
Source:
https://www.cultivated.news/p/legalization-and-nevada-s-illicit-market
📋 POUGHKEEPSIE: OCM SUSPENDS BLACK MARKET CANNA CO. LICENSE AMID OWNER’S FEDERAL CHARGES
The New York State Office of Cannabis Management issued a suspension order against Black Market Canna Co. on October 14, 2026, and served it at 11 a.m., according to the Poughkeepsie Journal. The dispensary, located at 89 Main Street in Poughkeepsie, opened in late March 2024 and held its grand opening on April 20, 2024, becoming Dutchess County’s first licensed recreational cannabis dispensary. OCM said the action followed an investigation into activities at the dispensary that created a risk to public safety. Employees cannot sell cannabis while the suspension remains in effect, though the state has not ordered the building sealed, so the suspension does not necessarily amount to a permanent closure. The move comes as owner Ali Khan Lodhi, 44, faces a federal charge of possessing firearms and ammunition as a convicted felon. Lodhi was charged in July 2026 after investigators searched his Poughkeepsie-area home and vehicle on July 29, recovering two 9mm firearms, loaded magazines and hundreds of rounds of ammunition, according to a federal criminal complaint filed in the Southern District of New York.
Lodhi’s legal troubles have expanded beyond the firearms case. In an October 16 report, the Poughkeepsie Journal detailed allegations from federal court filings that Lodhi approached two people in separate attempts to arrange the killing of his business partner, whom he was involved in a lawsuit with earlier this year, with one of those people described as a Black Market Canna Co. employee. The outlet reported that neither alleged plot moved forward. A federal judge denied Lodhi’s request for release on bail on October 14, and he remains detained pending trial. The federal charge is an allegation, and Lodhi is presumed innocent unless proven guilty. It remains unclear when, or whether, the dispensary will be permitted to resume sales.
Source:
https://wpdh.com/dutchess-county-marijuana-dispensary-closure/
📋 NEW YORK: NURSERY LICENSE APPLICATIONS OPEN NOVEMBER 5, CAPPED AT 50
The New York Cannabis Control Board approved Resolution No. 2026-76 on October 1, setting November 5 as the opening date for adult-use marijuana nursery license applications. The Office of Cannabis Management will stop accepting submissions once it receives 50 applications, and anything filed after the 50th submission will not be considered filed, with those application fees returned. Nursery licensees can produce, sell and distribute clones, immature plants, seeds and other agricultural products intended for marijuana planting and cultivation, supplying licensed adult-use cultivators, cooperatives, microbusinesses and registered organizations. The state is offering three categories based on cultivation method and size. Outdoor nurseries may use up to 100,000 square feet with a $750 license fee, while indoor and mixed-light nurseries are each limited to 10,000 square feet, with fees of $2,000 and $1,000 respectively. Applicants must also obtain a Nursery Grower Certificate of Registration through the New York State Department of Agriculture and Markets.
Under state law an adult-use cultivator can hold one nursery license, letting cultivators run a separate commercial nursery business and sell qualifying plant material to other licensed businesses. Because the window closes at a firm cutoff rather than running for a predetermined number of days, the November 5 opening works as a first-come entry point into a part of New York’s marijuana supply chain that has not previously had a dedicated general application window. Social and economic equity applicants may qualify for reduced fees under the state’s marijuana regulations.
⚖️ NEW YORK: CANNABIS CONTROL BOARD ISSUES ADULT-USE LICENSES OVER COMMUNITY BOARD OBJECTIONS
On October 1, 2026, the New York Cannabis Control Board adopted Resolution 2026-68 to issue adult-use licenses to the applicants listed in Attachment A, spanning retail, CAURD, cultivation, processing, and PT3 branding categories. Among the approvals were The Premium Bud LLC at 4685 Manhattan College Parkway in the Bronx and Leafy Green, Inc. Under Section 76(4) of the Cannabis Law, when a New York City community board submits an opinion for or against a retail cannabis license, the Board must respond in writing explaining how it considered that opinion. The Board approved The Premium Bud even after a community board raised concerns about the location and the number of existing dispensaries in the ZIP code, finding the premises complied with siting rules. Specifically, there are no schools within the required 500-foot separation distance, and no licensed adult-use retail dispensary is located within 1,000 feet of the proposed premises.
The resolution bars any approved licensee from beginning adult-use operations until it completes additional requirements and receives written approval from the Office of Cannabis Management’s compliance team. The decision reflects the Board weighing local opposition against statutory siting standards, with approval turning on whether a premises meets the Cannabis Law and its regulations rather than on community sentiment alone.
Source:
https://cannabis.ny.gov/ccb-resolution-2026-68
💼 THIS MONTH’S CANNABIS DEALS
Queens
Our best available NY deal right now is in Queens. BDSA predicts this location will do $5M+ in revenues. It has proximity protection, a lease ready to execute with all terms agreed upon, and a retail license. Some highlights:
- → 24,000 cars passing by each day
- → Reasonable lease at $8,000 for 3,500 sq ft
- → White box interior ready for low cost build out
- → Nearest dispensary 1.3 miles to the south and no competition to the north for 2.5 miles.
- → Asking $650k for the package
Take a look here: https://retail.cann.dev/deal-room/42
Park Slope, Brooklyn
Asking: $3,000,000
- Open just over 12 months with $2.6M in gross revenue over the last 12 months and increasing.
- Net profit of $850K over the same period.
- Rent is $25,750 per month on a 10+ year lease for a 2,000 sq ft space, with 25K daily traffic count.
Rockland County, NY
Asking: $1,750,000
- Open since November with $1.5M to $1.6M in projected sales for the first 12 months.
- Last month’s net sales were $160K.
- Building is 4,400 sq ft at $12K per month including NNNs, with 10%+ EBITDA and a 28 car parking lot.
- Social equity license fully transferable as of August 27.
Albany, NY
Asking: $2,400,000
- Open since June 2025 with $1.3M+ in total sales through the first 12 months.
- Current revenue run rate is $115K per month and growing month over month.
- 1,700 sq ft Class A buildout at $5,300 per month NNN with 14 years remaining on the lease.
- 46% gross margin with approximately $200K in net income through the first 10 months.
- 11 car on site parking lot and drive thru infrastructure already built and paved.
- Absentee owned with significant upside for an owner operator. Sale includes the operating business and licenses.
Bronx, NY
Asking: $1,999,999
- Operational for approximately 12 months with continued upward momentum as the store matures.
- Projected 2026 gross income of $2,458,492.68 with projected 2026 net income of $512,851.28, representing a 21% profit margin.
- Freestanding building of approximately 6,000 sq ft total, including about 2,600 sq ft on the ground floor, 2,600 sq ft on a sub leasable second floor, and 600 sq ft basement.
- Annual rent is approximately $360,000, or $30,000 per month, with a long term lease to be established with the buyer.
- Pricing reflects approximately 0.81x projected 2026 gross income and approximately 3.9x projected 2026 net income.
Kingston, NY
- Operational store where the owner is looking for an operational partner to step in through a management agreement, run day to day operations, and take over the business.
- Terms to be negotiated, with the intention for the new operational partner to own the business at the end of the agreement.
- A strong fit for someone looking to get into an operating store without a full upfront purchase.
Peekskill, NY
Asking: $1,800,000 (recently reduced)
- Last 12 months revenue was $2.8M with EBITDA over $200K, excluding owner salaries.
- Sellers have just reduced price on this opportunity in order to move quickly.
The Bottom Line
October 2026 showed New York’s cannabis market under tightening oversight. The CAURD ruling against Gotham Buds, the suspension of a Poughkeepsie dispensary, and board approvals granted over community objections all turned on compliance and ownership rules. Flagship revenue fell 48% across seven months, and the state’s first nursery license window shall open on November 5, 2026.
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