This year’s California State Fair will feature weed sales and a cannabis consumption area in the latest sign of marijuana’s growing acceptance by mainstream America. This year marks the first year that cannabis sales have been permitted at the event, which begins in Sacramento on July 12.

The California State Fair welcomed weed to the festivities for the first time in 2022 with an exhibition and competition, much like many of the state’s famed agricultural products including wine, cheese, olive oil and craft beer. The pot-friendly events will be expanded this year, with a broadened marijuana products competition, a weed consumption lounge and onsite sales operated by licensed cannabis retailer and event concessionaire Embarc.

“The California State Fair took a historic leadership position in 2022 with the introduction of a cannabis exhibit and competition,” Tom Martinez, CEO of the California State Fair, said in a statement. “This year, we’ve expanded our offerings to include onsite sales and consumption in a designated area to provide a platform to amplify California’s rich agricultural bounty and facilitate storytelling for farmers from diverse backgrounds and experiences.”

Shopping for Weed at the State Fair

This year will be the first time in the 170-year history of the California State Fair that cannabis sales and consumption will be allowed. The cannabis exhibition hall, which is restricted to adults aged 21 and up with government-issued identification, will include farm displays and educational information about California’s storied cannabis history. 

Visitors will be able to scan QR codes to learn more about Golden Bear award winners, add cannabis products to a virtual shopping basket and purchase them at Embarc’s on-site dispensary. The area will feature a 30,000-square-foot consumption lounge, accessible via a designated walking path, to give attendees over the age of 21 an opportunity to try winning products from diverse farms and brands from throughout the state.

“Hosting cannabis sales and consumption is a groundbreaking milestone in destigmatization by facilitating a deeper connection between consumers and the farmers who cultivate their products with such care,” said Lauren Carpenter, co-founder of Embarc. “Joining James Leitz, pioneer of the educational exhibit and competition for the past two years, on an expanded competition and experiential dispensary is a major step forward for responsible normalization.”

Organizers of the event say that visitors to the onsite consumption area may be surprised by how the exhibit hall has been transformed for the event.

“‘Designated smoking area’ is the required terminology,” Carpenter told the Los Angeles Times. “But that makes it sound like people standing around outside of a building smoking. This is intended to be experiential and fully built out and produced with a stage where we will have a ceremony for our [cannabis] award winners. [And] right now, our theme is ‘oasis’ — because, in case you missed it, it’s really hot in Sacramento — and our intention is to make this a respite.”

“This initiative spotlights the significant role of cannabis in California’s agricultural industry, marking a major milestone in the state fair’s 170-year history,” said James Leitz, executive producer of the cannabis competition and exhibit. “Expanding the competition to include all form factors and providing patrons the opportunity to directly engage with and consume winning brands is transformational for public understanding of the plant.”

The California State Fair kicks off on July 12 at the California Exposition Center in Sacramento and runs through July 28.

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Over the past few months, the Nevada Cannabis Control Board has approved a handful of cannabis consumption lounge licenses. On Feb. 15, the CCB announced that Thrive Cannabis Marketplace’s lounge, called Smoke and Mirrors, is the first to receive its final license in Nevada.

“We’ve marked a lot of ‘firsts’ in Nevada and we’re honored to yet again be at the forefront of Nevada’s cannabis industry by officially launching the first regulated cannabis lounge in the state,” said Thrive Cannabis Marketplace CEO and managing partner, Mitch Britten. “With Smoke and Mirrors, we have created an unparalleled destination for cannabis enthusiasts to enjoy a diverse range of premium products in a really engaging atmosphere.”

The lounge will offer both a “curated selection of premium cannabis products” as well as infused beverages, although alcohol will not be available as according to Nevada state law.

The Nevada Cannabis Compliance Board (CCB) also released a statement about Thrive, sharing that it “is the first cannabis consumption lounge inspected by Board agents to ensure the facility is adhering to state regulations.” Thrive first received its conditional license in June 2023, and in September, it received a Special Use Permit from the Clark County Zoning Commission. “We are thrilled to be among the first in the state to do so,” Britten said at the time. “This is a huge milestone for us and we can’t wait to finish this incredible new offering in the Vegas valley.” As of Feb. 13, the lounge inspection was completed, which allowed Thrive to receive its final state license for operation.

The CCB also shared that there are a total of 19 lounges that have been approved for a conditional license so far (14 attached to dispensaries and five that are independently located). Smoke and Mirrors will operate in what used to be a strip club, located west of the Strip at 2975 S. Sammy Davis Drive. If all goes according to plan, Smoke and Mirrors will open by the end of the month.

Last month, former CCB executive director Tyler Klimas appeared on Episode 77 of the Weed Wonks podcast. Klimas spoke about the long wait to get consumption lounges rolling, and how more are expected to open in the near future. “It’s an unknown market. There is no blueprint anywhere,” Klimas said. “We see many business plans and projections, but nobody really knows until we open it up. We don’t know how successful it’s going to be, which is very exciting.”

The process has taken much longer than anticipated, but Klimas explained that there are a lot of moving parts connected to this new business opportunity. “Obviously when you’re talking about social consumption, you’ve got local governments playing a huge role in that. You’ve got law enforcement and the anxieties that law enforcement has, deservedly so, around social consumption.”

Planet 13 is the only other consumption lounge conditional license holder that has publicly announced a potential opening date, but so far has not received its final state license for that to occur. It initially announced the renderings for its lounge in November 2023, which is supposed to include VIP booths, bong chandeliers, and cannabis cocktails. We’re thrilled to share our exciting plans for our trailblazing cannabis consumption lounge. From day one, our goal has been to out-Vegas-Vegas, and this is another big step in that direction. It’s an extraordinary space for cannabis novices, connoisseurs, tourists and locals to enjoy cannabis while experiencing world-class entertainment,” said Larry Scheffler, Co-CEO of Planet 13. “One of the main goals for this year was to increase the utilization of the SuperStore to drive more traffic, and revenue while improving cost structure and operating margins. We are executing on that goal while continuing to define Planet 13 as a differentiated retail brand with national recognition.”

The NuWu Dispensary, located on Las Vegas Paiute Tribe land north of downtown Las Vegas, is technically the state’s first operating consumption lounge, which opened in 2019.

The first three conditional licenses were granted to Planet 13, Thrive Cannabis Marketplace, and SoL Cannabis in June 2023. In July, LA Lounge LLC was the first independently located consumption lounge to receive a license, followed by three more licenses grants in August for Deep Roots Harvest, Global Harmony, and KV Group. In October, additional licenses were granted to Curaleaf Holdings, Inc., Green Thumb Industries, Inc., Desert Evolution, LLC, Higher* Archy, LLC, NevadaPure, LLC, and TGIG, LLC. As of October, there were 13 total number of conditional license holders, which was followed by six more.

New changes to Nevada’s cannabis law went into effect on Jan. 1, which includes an increase to the possession limit. Previously consumers were limited to possessing just one ounce, and now they can carry up to 2.5 ounces. Also, now adult-use cannabis stores can sell to medical cannabis patients, as no new medical cannabis dispensary licenses will be approved (except for regions where adult-use cannabis has been banned). “That’s one of the big changes, (but) I think there are a bunch of things in the bill that are really designed to be business-friendly and moving our cannabis industry into the next phase,” said Sen. Dallas Harris, a sponsor of the bill that led to the changes.

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With the debut of The Sphere in Las Vegas, Nevada and the growing updates for entertainment and tourism, officials are slowly moving forward with consumption lounge license approval. On July 25, the Nevada Cannabis Compliance Board (CCB) approved the state’s first conditional license for a stand-alone cannabis consumption lounge.

The first winning license belongs to LA Lounge LLC, which is the first independent company that’s not connected to a dispensary. According to KTNV Las Vegas, the owners don’t have a location picked out yet, but once they do it will need to be inspected by the CCB before beginning operation. Once a business receives a license, they have one year to get things up and running.

The first round of consumption lounge licenses were approved in June, which included Planet 13 and Thrive Cannabis Marketplace in Clark County, and The Venue at SoL Cannabis in Washoe County. These businesses could see their consumption lounges open up by the end of 2023, if they receive final approval from the CCB. “We get asked about it daily by most customers,” said David Farris, Vice President of Sales and Marketing with Planet 13.

Recently, CCB Executive Director Tyler Klimas confirmed that things are progressing well. “It sounds like we will likely see some consumption lounges open by the end of the year, maybe some as soon as October,” Klimas said, according to KTNV Las Vegas. At the most recent meeting, the CCB also adopted new regulations for air ventilation requirements that are supposed to make it easier for applicants to comply with.

Another prospective license owner, 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 already submitted everything that is required of us, so we are hoping to be at the next CCB meeting and get the conditional license,” Cooks said. “Ideally, we would like to be open by January. We want to beat the curve for Super Bowl.” The next CCB meeting will be held on August 22 for more potential licenses to be granted. 

Consumption lounges were approved in June 2022. Prior to that, visitors and residents could only consume cannabis within a private residence. Forty conditional licenses were approved last fall. “We will do sit down interviews and make sure we understand their ownership structure and their business plan and then they will come in front of the board and the board will determine them suitable or not to proceed to perfecting their license,” Klimas said at the time. 

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 stands to benefit greatly from its consumption lounges, other states have also been progressing with public consumption locations as well.

In California, consumption lounges are in full swing in places like San Francisco, which has a rich history with lounges during its early medical cannabis era. Alaska adopted early rules for consumption lounges in 2018, and the first one opened in 2021. Colorado started accepting license applications back in 2021, and so far there are a few private lounges that are currently available. 

Other states such as Massachusetts have approved social consumption programs but have not yet finalized plans. Most recently in June and July, the Massachusetts Cannabis Control Commission (CCC) held listening sessions for social consumption “to hear from stakeholders prior to drafting new policies. After draft regulations are prepared and published, there will be notice of a formal public comment period as an opportunity to provide additional feedback.”

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

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Visitors to Las Vegas will soon have places to legally smoke weed as Nevada regulators have issued the state’s first three conditional licenses for cannabis consumption lounges. The Nevada Cannabis Control Board (CCB) issued two licenses for businesses in the Las Vegas Valley, while the remaining permit was issued for a lounge to be located in Washoe County in the northwestern corner of Nevada.

Before they can invite guests in to light up, the three Nevada businesses must first receive local approval and undergo a final inspection by board agents with the CCB. But with their conditional licenses in hand after approval by the board at a meeting on June 20, the lounges can finish planning and constructing their sites and prepare for opening.

“Receiving this confirmation from the state allows us to move on to the final design and buildout of our consumption lounge,” said Larry Scheffler, co-CEO of Planet 13, a dispensary complex near the Las Vegas Strip that received one of two licenses issued in Clark County. “The consumption lounge will be a huge step to unlocking the full potential of the SuperStore as a cannabis destination. It will give customers the ability to try products prior to buying, watch live entertainment, and enjoy food and drink in a social setting that matches Planet 13’s incredible experiential design standard.”

Planet 13 vice president of sales and marketing David Farris said that the company is still in the planning and construction phase for its lounge. The company had originally considered a restaurant concept for its lounge, but at the CCB meeting, Planet 13 general counsel Leighton Koehler told the board that the company is considering a range of ideas from a “modest” tasting room to a more expansive nightclub experience. 

“It’s a strict business, pencil out the math (decision)—we’re still looking at that and trying to decide how much it costs to implement,” Koehler said during the meeting.

Representatives of the vertically integrated cannabis firm said that they plan to submit their plans to Clark County in the coming weeks for a review by county officials that could take several months. Neither Planet 13 nor Thrive Cannabis Marketplace, the second business to receive a cannabis consumption lounge in Clark County, have set an expected opening date. Thrive hopes to open its lounge on Sammy Davis Jr. Boulevard in time for the MJ Biz Con cannabis industry trade show in late November.

Chris LaPorte, managing partner of Reset, a cannabis consultant firm representing Thrive, said the company’s approximately 3,000 square-foot lounge venue Smoke and Mirrors would be a place for “cannacurious” tourists to be introduced to different marijuana products without visiting a dispensary.

“It’s just a vibe,” LaPorte said. “It’s like any other Las Vegas nightlife hospitality, but instead of a liquor bar, it’s cannabis as social lubricant.”

Edward Alexander, the owner of SoL Cannabis in Washoe County, said that he envisioned his business as a gathering site for the community, but many patrons had questioned why they were not allowed to consume the products they had just purchased at the dispensary.

“Every weekend during the summer, we do music at our facility,” Alexander said during Tuesday’s CCB meeting, as quoted by the Las Vegas Review-Journal. “And every weekend, the old grouchy, tattooed hippie is out there saying, ‘I know you’re at Disneyland, (but) you can’t ride the rides.’”

At its June 20 meeting, the CCB also amended the air quality regulations for cannabis consumption lounges by reducing the required number of air exchanges per hour in smoking areas from 30 to 20 exchanges per hour and from 20 to six exchanges per hour in non-smoking areas. The change will “allow for greater flexibility in air ventilation requirements for cannabis consumption lounges further reducing barriers of entry for all potential licensees including social equity applicants,” according to the board. Officials made the change after applicants for the lounge licenses said that building an air conditioning system to meet the stricter requirements is too expensive.

“If you’re moving air every minute or two minutes, it’s a massive power consumption challenge,” said LaPorte.

Late last year, the CCB conducted a digital drawing to select 40 businesses for prospective cannabis consumption lounge licenses “via a random number selector to determine the issuance of independent cannabis consumption lounge licenses for non-social equity applicants and social equity applicants,” according to a statement from the agency. Prospective license holders must submit all required documents for a suitability investigation by CCB board agents in order to receive a conditional license.

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Visitors to Atlantic City could have the convenience of a cannabis dispensary and consumption lounge located just off the famed Boardwalk as soon as this summer under plans being considered for one of the city’s vintage hotels. If approved by regulators, the proposal would add a lounge permitting on-site consumption of cannabis products to a retail marijuana dispensary already planned for the Claridge Hotel, a 1920s-era former casino only steps from the Boardwalk.

New Jersey state regulators are currently in the process of developing the rules to govern cannabis lounges where patrons can legally smoke, vape, or otherwise consume cannabis in a public setting. The eventual approval of the proposed regulations is highly anticipated by the state’s nascent cannabis industry, with entrepreneurs including Raekwon of Wu-Tang Clan fame already announcing plans to open weed lounges.

Dispensary and Lounge Approved by Local Regulators

In Atlantic City, the Casino Reinvestment Development Authority last week approved plans to open the High Rollers Dispensary in the former casino area of the Claridge Hotel, which is located just off the Boardwalk between Park Place and Indiana Avenue. Jon Cohn, an owner of the business, told local media that High Rollers is close to finalizing a lease for the Claridge. The plans include a $3.2 million renovation of the property, which would add a new entrance to the building on Pacific Avenue near Indiana Avenue. 

The planned dispensary will occupy most of an area that was once an art gallery and is now mostly used for weddings, cocktail parties, and other events. The hotel plans to retain a portion of the space for its popular wedding business. In addition to the new entrance, the dispensary and lounge will also be accessible through the Claridge’s lobby, except when the hotel is hosting weddings at the site.

The High Rollers portion of the space, including a 3,700-square-foot baccarat room on the second floor, will be remodeled into a cannabis dispensary and consumption lounge. Plans for the consumption lounge include a bar for nonalcoholic beverages to comply with New Jersey’s proposed regulations for the businesses, which do not permit alcohol or food to be sold in consumption lounges. Other possible amenities for the site, which could be open as soon as this summer, include live entertainment and opportunities for outside food vendors. 

High Rollers has also been awarded a license for a cannabis cultivation facility on a vacant property in Atlantic City on Martin Luther King Boulevard near Arctic Avenue. The company expects to create more than 200 jobs to operate the enterprise, with about 175 positions needed for the cultivation facility and a staff of about 35 to run the cannabis dispensary and cultivation lounge.

“We feel it’s a good fit for the city as a whole, to utilize cannabis for tourism,” said Cohn. “You can’t be on the Boardwalk, but it’s relatively close.”

Atlantic City Has Weed ‘Green Zone’

New Jersey legalized recreational marijuana in 2021, and the state now has 21 dispensaries offering adult-use cannabis to consumers. Last year, Atlantic City established a “green zone” to attract cannabis businesses to the city’s struggling downtown area. The zone includes Atlantic Avenue and Pacific Avenue from Boston Avenue to Maryland Avenue, as well as the Orange Loop District, an area of bars, restaurants, and live entertainment stretching from Tennessee Avenue and New York Avenue from Pacific Avenue to 200 feet from the Boardwalk. Permitted cannabis uses within the zone will include cultivation, manufacturing, wholesaling, distribution, retail, and delivery. 

The Atlantic City Boardwalk itself, however, has restrictions against cannabis businesses. The restrictions do not apply to the Claridge Hotel, which is separated from the Boardwalk by Brighton Park and the city’s Korean War Memorial. Atlantic City also has two medical marijuana dispensaries, The Botanist and MPX NJ.

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A California lawmaker has introduced a bill that would allow the state’s licensed cannabis consumption lounges to sell freshly prepared foods and beverages and host live events. The measure, Assembly Bill 374 (AB 374), was introduced last week by Democratic Assembly Member Matt Haney.

Under California law, cannabis consumption lounges are not allowed to sell freshly prepared food to their patrons. A rule change adopted in November 2022 allows lounges to offer prepackaged food and beverages and for customers to bring their own freshly prepared items on a limited basis, but the businesses themselves are denied the opportunity to serve most non-infused products to their customers.

Haney’s bill would allow consumption lounges in California to sell freshly prepared food and drinks and to host live entertainment events. In the Netherlands, more than 700 cannabis cafes, often referred to as coffee shops, draw 1.5 million visitors per year, according to information from Haney’s office. Allowing the state’s consumption lounges to operate under a similar business model would give the businesses new economic opportunities and could serve as a draw for tourists and locals to visit struggling downtown business districts.

“Lots of people want to enjoy legal cannabis in the company of others. And many people want to do that while sipping coffee, eating a scone, or listening to music,” Haney said in a statement. “There’s absolutely no good reason from an economic, health, or safety standpoint that the state should make that illegal. If an authorized cannabis retail store wants to also sell a cup of coffee and a sandwich, we should allow cities to make that possible and stop holding back these small businesses.”

The bill would not permit cannabis consumption lounges to sell alcoholic beverages. Additionally, Haney noted that the proposal is limited to licensed consumption lounges and does not permit other types of enterprises to enter the legal cannabis market.

“To be clear, we’re not saying that coffee shops should be allowed to sell cannabis,” Haney said. “We’re saying that cannabis shops should be allowed to sell coffee. It shouldn’t be illegal for an existing cannabis business to move away from only selling marijuana and instead have the opportunity to grow, thrive and create jobs by offering coffee or live jazz.”

Bill Offers New Opportunities For Consumption Lounges

Supporters of the legislation say that Haney’s bill would give cannabis consumption lounges opportunities to grow and serve their customers. Although he has not taken a position on the legislation, Nikesh Patel, the director of San Francisco’s Office of Cannabis, said that new sources of revenue could help businesses survive in a competitive and highly regulated industry.

“We hear from our operators that it’s a very challenging time to be in the cannabis space,” said Patel. “And some of the reasons are reduced foot traffic on the streets and higher tax burdens on cannabis businesses. There is still competition with the illicit market, and the cost of flower as a whole has gone down, and that’s had a trickle effect on the entire supply chain.”

Haney’s bill does not automatically permit cannabis consumption lounges to serve food and drink or host live events. Instead, local governments would also have to approve the change for the businesses in their jurisdictions. City leaders in West Hollywood, Palm Springs and Cathedral City have already passed such ordinances, according to Haney’s office. In San Francisco, Supervisor Rafael Mandelman plans to introduce legislation on Tuesday to allow the city’s consumption lounges to take advantage of Haney’s proposal.

“I think those (current) restrictions don’t make sense and they’re not helpful to the lounges,” Mandelman said. “And I think that in terms of making those more enjoyable spaces and building out our local cannabis industry, tourism and economic developments — for all those reasons, it makes sense to take advantage of what Assemblyman Haney is putting forward.”

Before it can become law, AB 374 must first be passed by the California Assembly and state Senate before heading to the office of Democratic Governor Gavin Newsom for his consideration. Although he is unsure if the governor will sign the bill if he is given the chance, Haney said that hopes Newsom will give California’s consumption lounges a new way to succeed in a challenging business environment.

“California’s small cannabis businesses are struggling,” said Haney. “Issues like over-saturation, high taxes, and the thriving black market are hurting cannabis businesses who follow the rules and pay taxes.”

“I hope that the governor, as a small-business owner himself in the past who has been involved in the hospitality industry, can now see this as an opportunity,” he added.

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If cannabis is legal, but consumers are only allowed to smoke in private residences, where does that leave tourists, or local cannabis consumers enjoying a night out, to reap the benefits of a legal market? Considering the amount of public spaces to consume alcohol, it seems like a severe limitation that folks can’t similarly enjoy cannabis in a public, social setting.

States around the U.S. have only just started to move forward with public consumption lounges over the last few years, but is the country’s northern neighbor Canada ready to make the plunge? The jury’s out on the country as a whole, but a new government report indicates that the province British Columbia is considering the leap.

It’s worth noting that British Columbian policy around public consumption is already a bit more liberal than that of many U.S. states. According to the province site, adults over the age of 19 are “generally allowed” to smoke or vape cannabis in public spaces that allow tobacco smoking and vaping. Of course, these spaces are distinct from a cannabis consumption space, typically used to refer to a business like a lounge, special event or establishment that allows for cannabis use, and potentially sales, on site.

In spring 2022, the province asked citizens for feedback on allowing cannabis consumption spaces through a demographically and geographically representative telephone survey, online survey and written submissions. British Columbia officials not only sought to understand citizen stances on consumption spaces but also to what extent people agreed or disagreed with proposed policy principles that could potentially guide regulations within these spaces.

Among 730 random phone survey respondents, 61% supported consumption spaces, and 35% had used cannabis at least once in the past year. However, only 34% of online respondents voiced their support, which the government said could partially be due to the specific research method and potential for self-selection bias. There were 15,362 total online respondents, and 305 had used cannabis in the past year.

Most of those who use cannabis also supported consumption spaces, along with cannabis retailers, producers and industry associations who provided written submissions, the report notes. The majority of cannabis users also said they would visit a cannabis consumption space to purchase and use cannabis, showing the most interest in cannabis cafés and lounges.

Those opposed generally did not use cannabis or were from a public health and safety organization or local government who provided written submissions. Non-users also indicated they would be likely to avoid events and businesses allowing cannabis consumption. The main concerns were the potential for spaces to serve both alcohol and cannabis and the potential increased risk of impaired driving.

Post-legalization studies in Canada have found time and time again that, at least with the country’s current laws, there hasn’t been a spike in stoned driving, including one just after the country’s 2018 legalization, another the following year and another from 2021, concluding that there was no evidence of significant changes surrounding cannabis legalization and weekly counts of emergency department visits. Of the U.S. states that have allowed cannabis consumption spaces, or promote special events like cannabis-infused dinners, there are generally specific bans on allowing alcohol and cannabis to be served at the same location.

The report cites the 2021 BC Cannabis Use Survey, which found an estimated 1.4 million people living in British Columbia reported using cannabis at least once in the past year. Therefore, it states there may be at least 750,000 people in the province who are interested in visiting a cannabis consumption space “at least once.”

“Health and safety are our utmost priorities as we consider how provincial cannabis policies could evolve,” said Mike Farnworth, Minister of Public Safety and Solicitor General, in a news release. “This report provides valuable insights into people in B.C.’s perspectives on cannabis and will help guide our work to support a strong, diverse and safe legal cannabis sector across the Province.”

One reason Canada has yet to implement legal consumption spaces has to do with its smoking bylaws. The bylaws were put into place for the sake of public health and safety, though research shows that cannabis and tobacco smoke are not equally carcinogenic.

While the report provides further insight around the wants, and concerns, of B.C. residents, the government has yet to make further decisions around cannabis consumption spaces and how they would be regulated. 

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State officials in Nevada have announced the final 20 applicants who will receive licenses authorizing them to run cannabis consumption lounges.

The Nevada Cannabis Compliance Board conducted a digital drawing on Wednesday “via a random number selector to determine the issuance of independent cannabis consumption lounge licenses for non-social equity applicants and social equity applicants,” the agency said.

State law opened the door for the board to “issue 20 independent cannabis consumption lounge licenses, half of which (10) are designated for social equity applicants.”

The board has said that the lounges are expected to open next year. 

On Wednesday, the regulatory board announced the following social equity applicants will receive licenses to open a lounge where cannabis consumption is allowed: NV Cloud 420 Lounge LLC (City of Las Vegas); GGCPA SE Inc (Nye County); MEDSnSIN (City of Las Vegas);

Sunflower Compassionate Company (City of Las Vegas); Lyxe Consulting LLC (City of Las Vegas); Greenwood Investment Group, LLC (City of Las Vegas); N&D Enterprises LLP (City of Las Vegas); City Lights Production LLC (Unincorporated Clark County); Royal Tree TLC LLC (City of Las Vegas); and GGCPA SE 3 Inc (Unincorporated Clark County).

The following non-social equity applicants were also selected via the random draw: FCWC Operations LLC (City of Las Vegas); Shanghai Lounge LLC (Unincorporated Clark County); Higher*Archy LLC (City of Las Vegas); The Limo Joint LLC (Unincorporated Clark County);

KV Group, LLV (Nye County); The Standard Lounge, LLC (Unincorporated Clark County); La Lounge LLC (Unincorporated Clark County); Cafecito SW LLC (Unincorporated Clark County)

Las Vegas Cannabis Industry Leaders (City of Las Vegas); and Rolling Cloudz LLC (Unincorporated Clark County).

Lawmakers in Nevada last year signed off on funding for the Cannabis Compliance Board to hire the necessary staff and support in order to implement the framework for the consumption lounges.

In June, the Nevada Cannabis Compliance Board signed off on the final round of regulations for the consumption lounges.

“In addition to outlining the licensing and operation of consumption lounges, regulations approved today lay the groundwork for greater inclusion within Nevada’s cannabis industry,” the board said in the press release at the time. “All applicants must submit a diversity plan, summarizing actionable steps and goals for meaningful inclusion. Additionally, half of the independent consumption lounge licenses in the initial round must be awarded to social equity applicants.”

“Prior to an open licensing period, the [Cannabis Compliance Board] plans to roll out tools and resources including worksheets, video tutorials and live webinars in order to ensure interested parties have access to the same information and are able to successfully submit an application,” the release continued. “The CCB expects to open the first licensing round for consumption lounges in the Fall, allowing for the first consumption lounges to open as early as the end of the year.”

Local television station KTNV reported that a “handful of applicants gathered at Mariposa Restaurant [in Las Vegas on Wednesday] to watch the virtual drawings unfold.”

Tyler Kilmas, the executive director of the Nevada Cannabis Compliance Board, told the station what now awaits the selected applicants. 

“We will do sit down interviews and make sure we understand their ownership structure and their business plan and then they will come in front of the board and the board will determine them suitable or not to proceed to perfecting their license,” says Kilmas.

According to the station, “the state opened an application period [in October], and in total 99 applications for a license were submitted.”

Voters in Nevada approved a ballot measure in 2016 that legalized recreational cannabis use in the state. 

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The Las Vegas strip is about to get even more lit.

Members of the city council cleared the way for the opening of cannabis consumption lounges, voting 5-1 on Wednesday against a motion that would have had Las Vegas opt out of allowing those businesses, according to the Las Vegas Review-Journal.

The vote came after the Nevada Cannabis Compliance Board in June gave its final sign off on the establishments.

The board laid out procedures for would-be lounge owners at the time.

“In addition to outlining the licensing and operation of consumption lounges, regulations approved today lay the groundwork for greater inclusion within Nevada’s cannabis industry,” the board said in a June release. “All applicants must submit a diversity plan, summarizing actionable steps and goals for meaningful inclusion. Additionally, half of the independent consumption lounge licenses in the initial round must be awarded to social equity applicants.”

“Prior to an open licensing period, the [Cannabis Compliance Board] plans to roll out tools and resources including worksheets, video tutorials and live webinars in order to ensure interested parties have access to the same information and are able to successfully submit an application,” the release continued. “The CCB expects to open the first licensing round for consumption lounges in the Fall, allowing for the first consumption lounges to open as early as the end of the year.”

That final regulatory approval came nearly a year after Nevada state lawmakers approved funding for the Cannabis Compliance Board, which has been charged with overseeing the consumption lounges in the state.

Cities in Nevada could opt out of allowing the consumption lounges in their jurisdictions. According to the Review-Journal, by “not responding to a letter from the Nevada Cannabis Compliance Board earlier this month, the city automatically opted in to the licensing process, but still had an opportunity Wednesday to change course.”

Councilwoman Victoria Seaman filed the motion to opt out, but it was voted down 5-1 on Monday.

Seaman said constituents had told her that “they would rather not have them in the residential areas and have them more in the tourist areas, so, I’m not going to be supporting this,” as quoted by the Review-Journal.

But others view the lounges as yet another boon for Las Vegas’ vibrant tourism industry. It will also provide refuge for the thousands of out-of-towners who descend upon the city each week. As local news station KSNV put it, the state’s “current law leaves many from out of town consuming the drug illegally, either on the streets or a hotel room,” but the cannabis lounges will change that.

According to the Review-Journal, the lounges “will allow marijuana customers to smoke the drug legally for the first time outside of private homes since voters legalized recreational use in 2016.”

“I think it’s important for the city to consider the business opportunity that consumption lounges will bring, and also some relief of issues we’re currently hearing about a lot because we’re not offering a place for folks to actually consume when they buy,” Councilwoman Olivia Diaz told the Review-Journal after the vote on Wednesday. “We have still some way to go and some more work to do.”

The newspaper reported that there will be 20 licenses awarded throughout the state for cannabis consumption lounges, half of which will be given to social equity applicants, individuals from communities that have been disproportionately affected by the War on Drugs.

The Cannabis Compliance Board announced earlier this month that the application period for prospective cannabis consumption lounge owners will open on October 14 and conclude on October 22.

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Regulators in Nevada on Tuesday gave the final sign-off to cannabis consumption lounges, paving the way for the establishments to perhaps open up by year’s end.

The state’s Cannabis Compliance Board voted on a slate of regulations for the lounges, a crucial regulatory hurdle in a process that has been nearly a year in the making.

According to local news station KLAS, some of the regulations approved by the board on Tuesday “included safety protocols at lounges, training requirements for staff, and location requirements for the lounges,” such as “certain distances from locations such as schools and community facilities.”

It was last August when Nevada lawmakers approved funding that had been requested by the Cannabis Compliance Board to hire staff and provide other support in the regulation of the lounges.

The Nevada Independent reported at the time that a legislative committee “unanimously approved three items that will provide the [Cannabis Compliance Board] with funds to hire more staff, work with the state attorney general’s office to hammer out regulations, and direct cannabis revenue toward education funding.”

Tyler Klimas, the executive director of the Cannabis Compliance Board, told the legislative committee at the time that the additional funding helped put the state on track to have the lounges open “at least the first quarter, or the first half of 2022.”

“Not only to see the lounges open, but then also the first part is where we would start to realize that revenue,” he said at the time.

Tuesday’s vote apparently keeps that timetable in place, with the Las Vegas Sun reporting that the board said the “first state-sanctioned cannabis consumption lounges could potentially open before the end of the year.”

It has been a long time coming for the Cannabis Compliance Board, which noted in a press release on Tuesday that it held 15 public meetings to go over potential regulations for the consumption lounges.

The board also provided details for prospective lounge owners.

“In addition to outlining the licensing and operation of consumption lounges, regulations approved today lay the groundwork for greater inclusion within Nevada’s cannabis industry,” the board said in the press release. “All applicants must submit a diversity plan, summarizing actionable steps and goals for meaningful inclusion. Additionally, half of the independent consumption lounge licenses in the initial round must be awarded to social equity applicants.”

“Prior to an open licensing period, the [Cannabis Compliance Board] plans to roll out tools and resources including worksheets, video tutorials and live webinars in order to ensure interested parties have access to the same information and are able to successfully submit an application,” the release continued. “The CCB expects to open the first licensing round for consumption lounges in the Fall, allowing for the first consumption lounges to open as early as the end of the year.”

Local news outlet KLAS reported that the Cannabis Compliance Board expects “40 to 45 applications for lounges attached to retail shops and 20 independent shops, 10 of which will go to social equity applicants.”

“What we are looking for is the impacts of drug policy on individuals and members of the community. We are looking at poverty level, we are looking at any past convictions of cannabis,” Klimas said, as quoted by KLAS.

Nevada legalized recreational cannabis use for adults back in 2017, but consumption has been confined to the private homes of individuals. That, of course, hasn’t stopped people from toking up in public. As The Street said, “while it is not technically legal to light up a joint while walking the Strip…the aroma in the air suggests that it’s happening quite regularly.”

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