Green gold rush creating gray marijuana market

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DENVER – The gold rush of legalized marijuana in Colorado and Washington is creating a confusing market of goods and services, from illegal Craigslist pot deliveries to a marijuana vending machine and a food truck selling pot-infused sandwiches.

While recreational marijuana sales are legal in both states, the marketplaces are surrounded by a web of laws and regulations intended to keep buyers paying taxes and transactions aboveboard. But with tens of millions of dollars in profits up for grabs, entrepreneurs are flooding the market with products and services operating in a gray area. Some ventures are completely illegal but the vendors escape prosecution by trying to stay low key. Others grab headlines that are misleading at best.

Craiglist is filled with advertisements for marijuana-delivery services in the Denver area. The ads insist they're offering a legal service: "Please do not flag! Amendment 20 and 64 compliant," referring to the state's...

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