Las Vegas cannabis comeback is underway

Nevada seemed like a safe choice for cannabis companies ahead of the pandemic. A seemingly endless stream of tourists from states where cannabis is illegal or where legal product offerings were poor. Several companies have made huge investments in the state, particularly in Las Vegas, to take advantage of tourists who are happy to spend large amounts of money smuggling some products home.

Of course, it’s not legal to take cannabis products across national borders, but that doesn’t stop many tourists from taking the risk. The pandemic naturally led to the crash of this market as tourism dried up and operations relied only on local residents’ businesses. Now it looks like the cannabis comeback is underway.

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Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF) reported record sales of $ 11.2 million with gross margins in excess of 50% in May. The company said May marked the third straight month of record sales as Las Vegas and America return to normal. In a statement, Planet 13 said hotels across the Las Vegas Strip have reported hotel rooms will be sold out for the foreseeable future and Planet 13 continues to expect strong sales due to increased tourist traffic. In May, Planet 13 reported that first quarter sales were up 41% from 2020 to $ 23.8 before the pandemic really leveled off and lockdowns began. So there is a lot of optimism for the second quarter.

“Nevada tourism and business are looking up, and our operations are reflecting that trend by growing steadily from month to month. We are happy to announce that the momentum of the past few months has continued with another month of record sales in May. Planet 13 has built a successful retail cannabis brand that is resonating with Americans. We remain confident that this upward trend will continue as Las Vegas reopens to its full potential and the upcoming opening of our Orange County SuperStore in July, ”said Larry Scheffler, Co-CEO of Planet 13. The company is opening its California Super Store on June 24th, which will include electronic shafts, a 16-foot octopus, an Instagram-enabled Planet 13 bus, and 50 registers.

Consumer lounges

One of the biggest problems Las Vegas faced with selling cannabis was the lack of places for tourists to consume. Flower sales are always the top sellers, but there was nowhere to smoke. Hotels often do not allow smoking in the rooms or on the balcony. While smoking cigarettes is permitted in some rooms, smoking cannabis is not permitted. This prompted the state to pass Assembly Bill 341 in early June, which allows adults 21 and older to buy and consume adult cannabis products on-site in any licensed “cannabis consumption lounge”.

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According to NORML: “The measure lays down rules for two different types of lounges for cannabis use. One group would be reserved for existing license holders of marijuana pharmacies, who can then apply to operate a cannabis consumption lounge on site. The other name would be for new, independent companies to apply for a license to operate an “independent cannabis consumption lounge” that is not on or adjacent to an existing retailer. The bill also provides for reduced license application fees for qualified social justice applicants. Local governments can issue guidelines under this bill that restrict access to lounges for cannabis use. “

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Prior to the legislation, only NuWu Cannabis in Vegas had a tasting room in its 16,000-square-foot marketplace. Because the pharmacy is located on sovereign land owned by the Las Vegas Paiute tribe, it is not subject to the same restrictions as the rest of the state. Instead, NuWu is self-regulated by the Las Vegas Paiute Cannabis Authority. As a result, Nevada has no marijuana taxes, no waiting rooms, and no reason not to open a consumption lounge. However, the location is north of the Fremont Strip, so consumers will need to drive around 15 minutes to get there.

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Planet 13 said it has reserved a sprawling dedicated space in the Las Vegas SuperStore for a consumer lounge that is due to be built as soon as possible.

“We’re excited that after the long wait, Nevada will finally be home to consumer lounges. We have long believed that tourists need a safe, legal and enjoyable place to consume cannabis and have been planning a consumption lounge in the SuperStore since the bill was presented two years ago, “said Bob Groesbeck Co-CEO of Planet 13.” Our SuperStore is one of the few pharmacies with the premise and proximity to the Las Vegas Strip to create a truly Vegas-esque club. As with the rest of our pharmacy, we look forward to raising the bar and showing the industry what is possible if your goal is to leave Vegas, Vegas. ”

This article originally appeared in the Green Market Report and was republished with permission.