Although they are a relatively new concept, marijuana consumption lounges are probably the most controversial aspect of the entire cannabis reform movement. The idea is to provide public rooms where customers can consume cannabis without running afoul of state cannabis laws. While more than a dozen states have now legalized recreational cannabis consumption, they have also outlawed public consumption and made it almost impossible for nonresidents to legally consume the cannabis they have purchased.
New York was among the first states to allow cannabis consumption sites for adults aged 21 and over. The state recently passed a bill that would allow licensed businesses to sell cannabis products and provide a space for customers to consume the cannabis they bought on site.
Just a few months later, Las Vegas is poised to launch its first marijuana consumption site as well, becoming the second state in the country to legalize the operation of consumption lounges. Regulators from Nevada recently finalized regulations for the state’s cannabis market that would lead to the opening of an estimated 60 to 65 marijuana consumption lounges. The move was aimed at making the state more attractive to tourists and boosting cannabis tourism, a segment that is now estimated to be worth $17 billion.
According to a public statement from the Cannabis Compliance Board, the first consumption sites are slated to open before the end of the year. The state of Nevada will issue some 40 to 45 licenses to existing cannabis stores as well as 20 licenses to independent consumption lounges. Another 10 licenses will be issued to social-equity applicants, people who live in disadvantaged areas, or people with prior nonviolent cannabis convictions.
The social equity licenses will have discounted fees. As per the finalized regulations, regulators will begin processing consumption lounge licenses starting this fall.
Nearly 65 applicants have already expressed interest in receiving the consumption lounge licenses, and they have even begun leveraging strategies to help the businesses stay profitable in the new cannabis-consumption-lounge segment.
This includes providing calm, comfortable spaces to act as an alternative to the Strip’s boisterous nightclub atmosphere and taking advantage of the consumption lounge to drive customer traffic to adjacent businesses. Cannabis tourism is a massive segment, says Christopher LaPorte, founder of marijuana hospitality firm Reset Vegas. LaPorte sees Las Vegas becoming a major marijuana tourism destination. Planet 13, a large entertainment center and dispensary near the Strip, is also looking to enter the consumption lounge segment by combining the lounge and restaurant experience.
It is steps like these in the development of the cannabis industry that show companies such as Prime Harvest Inc. that there is significant potential growth and opportunities in the industry if enabling laws and systems are put in place.
NOTE TO INVESTORS: The latest news and updates relating to Prime Harvest Inc. are available in the company’s newsroom at https://cnw.fm/PRIME
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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