Nevada's marijuana regulators have rejected an appeal by a group of alcohol distributors who wanted to block the state from licensing pot businesses to transport marijuana from growers to retail stores.

The state Tax Commission voted unanimously Tuesday to uphold the Tax Department's earlier decision to expand the licensing to those other than liquor distributors because they have been unable to keep up with demand.

The distribution turf battle has been tied up in district court and administrative appeals since legal recreational sales began July 1.

Kevin Benson a lawyer for the Independent Alcohol Distributors of Nevada says they haven't decided whether to file another lawsuit challenging the state's position.

Tax Department spokeswoman Stephanie Klapstein says it's not clear how soon the new distribution licenses could be issued.

A judge refused earlier this month to extend an injunction prohibiting any distribution licensees for non-liquor businesses, partly because he said they hadn't exhausted the administrative appeal process.

The tax commissioners decided Aug. 21 there aren't enough alcohol distributors to meet the high demand. But they agreed to postpone any additional licensing until they hear Tuesday's appeal.

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