Sovereign tribes? How is that different than demanding Ontario start collecting New York State sales tax?
And you are correct that it is at the distributor level. What is to stop out of state distributors from doing business with the Seneca nation? This is nearly on the Pennsylvania border.
Contrary to what the Native American race-baiters like to argue, "sovereign" Indian Nations have never been treated exactly like foreign governments. They are subject to federal law and, to the extent federal law decrees it (as in this case) state law.