Los Angeles Medical Marijauan Dispensaries Sue Over City's Lottery Plan

The Los Angeles Times is reporting that a group of Los Angeles medical marijuana dispensaries are suing to keep a city ordinance from taking effect that would close all but 100 of the dispensaries and use a lottery to choose who gets to stay open.
Dispensary owners say they are upset because they've followed all of the rules and still may face closure. I feel for them. I understand limiting the locations where dispensaries are allowed to operate (which should naturally limit the number of operations), but why put the cap at 100 dispensaries? Shouldn't market demand be allowed to determine which dispensaries stay open like it does for every other type of business? I think the L.A. city council needs to back off and let capitalism run it's course.
You can read the full article on the L.A. Times Web site here.