Chances are that if you have set foot in Vegas since recreational cannabis consumption was legalized, you’ve seen advertisements for Planet 13. The city’s largest cannabis dispensary has set its sights on bringing its cannabis culture to the next level with the purchase of a 20,000 square foot warehouse. The company aims to make this space the first cannabis consumption lounge in Sin City.
Already a tourist hotspot, Planet 13 intends to take full advantage of the state’s approval of cannabis consumption lounges. By providing cannaseurs who purchase Planet 13 products a place to light up, dine, and get the full Vegas entertainment experience.
David Farris, vice president of sales and marketing for Planet 13, recently told the Las Vegas Sun in an interview “We want to make something that people can travel to, something like a club concept. We know the pressure is on us to build something special.”
Until recently, state law provided for cannabis consumption strictly in private residences, with the only exception to the rule being a lounge located on tribal lands and operated by members of the Paiute Tribe.
Metro police in Las Vegas remark that while cannabis use is prohibited in public, there is no mistaking its characteristic smell, which can be identified throughout the Las Vegas tourist corridor at all hours.
To assist in alleviating the transgressions in the open air, the Cannabis Compliance Board (CCB) expects the new cannabis lounges to be opened in the first half of 2022.
Tyler Klimas, executive director of the regulatory board that oversees the cannabis industry in Nevada, said, “There will be opportunities to have some first-in-the-nation-type lounges that other states don’t have. In a lot of people’s minds, a lounge is just four walls with some couches. I think we’re going to see some experiential ideas. What that looks like, we’re all going to find out once those ideas and applications come before the board.”
Some speculate that a new and unique dining experience focused on cannabis-infused cuisine will emerge. Executive director of the Nevada Dispensary Association Layke Martin Conine cited concepts that included such restaurants and comedy clubs already being passed around among industry insiders.
The lounges will require a separate license to operate apart from those required to operate a dispensary. Though, current dispensary operators were informed of their eligibility in the second week of June. The CCB requested letters of interest from dispensary owners who are considering the additional license. At this point in time, the board has received about a dozen such letters.
Klimas weighed in on questions concerning the permits, saying “It’s going to be much more than just an application that you fill out and send in. We’re going to sit down with people to better understand their business model, and the board will have to deem you suitable to obtain a license.”
According to lawmakers, the goal of these lounges is to provide a safe venue for cannabis consumption where patrons can enjoy their products alongside some dinner or entertainment. Potential operators are excited at the prospect of providing such a unique and game-changing service.
Simon Nankervis, CEO of the Source, which operates three dispensaries in the region and intends to apply for a cannabis lounge license, offered his optimism in a statement, “There’s always been this conflict between consumption and recreational legalization. If you’re here in Las Vegas on vacation, it’s almost impossible to legally consume right now, because you don’t have access to a private residence. Now, there will be a safe haven.”
Cureleaf is another operator weighing in on the industry change, with a statement from CEO Joe Bayern saying the addition of cannabis lounges to the growing industry “speaks to the increased normalization and acceptance of the industry at large.” He went on to add, “Curaleaf goes to great lengths to deliver the highest quality products, brands, and experiences for our customers, and this opportunity will be instrumental in helping people explore the dynamic culture of cannabis and create confidence around consumption.”
All this optimism is refreshing for many invested in the industry. Banking difficulties, the negative Federal stance, and local stigma all keep operators on pins and needles when it comes to running their businesses. However, these new lounges that offer an additional avenue of integration for cannabis into mainstream society come with some rules to be observed and more to come.
As the summer draws to a close, the CCB will being to form subcommittees on the regulatory details of how these lounges will have to operate, what products can be consumed, and the amounts of cannabis products allowed on-hand. For example, one such subcommittee will focus on public safety and include law enforcement officials among its members. Klimas acknowledged the need to include law enforcement in the design of the program, stating “As we design these regulations, it’s important that we have the right voices in the room, such as law enforcement.”
What is known now is that these facilities will be prohibited from:
Klimas expects that employees will need to undergo additional training to evaluate guests’ level of impairment and respond accordingly.
Social equity is a concern for both regulators framing the licensing program and operators. Scott Rutledge, a partner at Argentum Partners, a group enlisted by the Nevada Chamber of Cannabis trade group to assist in making the initial push for cannabis lounges, reassured concerned parties that “We will see new licenses granted to those who have been left out of the industry, specifically those who have been harmed by the failed war on drugs. We expect to see much more diversity in ownership and begin to create a more equitable industry. These new licenses are a step in the right direction.”
Cannabis consumption lounges do exist outside of Nevada. California, Colorado, and Michigan each have the infrastructure in place for these facilities to operate legally and safely for consumers. However, the ongoing coronavirus pandemic has kept the number of those operating establishments low.
As prescribed by the current program outline, only cannabis products that have been purchased at a lounge can be consumed there.
