New Cannabis Consumption Lounge License Approved in Nevada

With the debut of The Sphere in Las Vegas, Nevada and the increasing updates for entertainment and tourism, the authorities are slowly moving forward with licensing approval for consumption lounges. On July 25, the Nevada Cannabis Compliance Board (CCB) approved the state’s first conditional license for a standalone cannabis use lounge.

The first winning license belongs to LA Lounge LLC, the first independent company not affiliated with a pharmacy. According to KTNV Las Vegas, owners have yet to select a location, but once they have one, it will need to be verified by the CCB before operations can begin. Once a company receives a license, it has one year to start operations.

The first round of consumption lounge licenses were approved in June, including Planet 13 and Thrive Cannabis Marketplace in Clark County and The Venue at SoL Cannabis in Washoe County. These companies could open their consumption lounges by the end of 2023 if they get final approval from the CCB. “Most of our customers ask us about this on a daily basis,” said David Farris, vice president of sales and marketing at Planet 13.

CCB Chief Executive Tyler Klimas recently confirmed that things are going well. “It sounds like we’re likely to open some consumption lounges by the end of the year, maybe some as early as October,” Klimas said, according to KTNV Las Vegas. At the recent meeting, the CCB also approved new regulations on ventilation requirements, intended to make it easier for applicants to comply.

Another potential licensee, Chandler Cooks, attended the July 25 meeting. He told KTNV Las Vegas that he plans to open a lounge called Moulin Noir in downtown Las Vegas. “We have already submitted everything that is required of us, so we hope to be at the next CCB meeting and get the conditional license,” Cooks said. “Ideally we would like to open in January. We want to turn the curve for the Super Bowl.” The next CCB meeting will be on August 22nd to award additional potential licenses.

Consumption lounges were approved in June 2022. Previously, visitors and residents could only consume cannabis inside a private home. Last fall, 40 conditional licenses were approved. “We will have discussions and make sure we understand their ownership structure and business plan. Then they will come before the board and the board will decide whether or not they are eligible to perfect their license,” Klimas said at the event.

The Las Vegas Convention and Visitors Authority reported in January that 38.8 million people visited Las Vegas in 2022. While the state of Nevada will benefit greatly from its consumption lounges, other states have also made strides in establishing public consumption locations.

Consumption lounges are in full swing in California, such as San Francisco, which has a rich history of lounges in the early medical cannabis era. Alaska introduced its first rules for consumption lounges in 2018, and the first opened in 2021. Colorado began accepting license applications back in 2021, and few private lounges are available so far.

Other states, such as Massachusetts, have approved social consumption programs but have not yet finalized the plans. Most recently, the Massachusetts Cannabis Control Commission (CCC) held societal use hearing sessions in June and July “to hear stakeholders before developing new guidelines.” After the draft regulations are prepared and published, there will be a formal public comment period during which we have the opportunity to provide additional feedback.”

In May, Massachusetts Gaming Commissioner Bruce Stebbins said the state’s pilot program would be “burdensome and expensive,” and the CCC scrapped it in favor of a leaner process.