New York State (NYS) passed the Marijuana Regulation and Taxation Act (MRTA) in March of 2021 to legalize adult-use recreational cannabis that allows for its distribution, retail sale, and on-site consumption in licensed businesses. While the state (NYS) has imposed some spatial constraints on the dispensaries’ locations, it is unclear what the current spatial patterns of those dispensaries are and how they impact neighborhoods. This research explores how recreational cannabis relates spatially to neighborhood characteristics using New York City as a case study. We identified how cannabis stores are spatially correlated with neighborhood attributes, including socio-demographic and land use characteristics. Our results from the compliance check showed that the highest noncompliance rate existed in block groups where dispensaries were located in relation to schools. The results from the spatial statistics suggest that dispensaries tended to be located near adult businesses that are not considered in existing buffering requirements. Our research allows policymakers to better understand the social and spatial impacts of recreational cannabis distribution to minimize negative effects on residential areas, schools, and other sensitive locations.