June 23, 2021



Nevada opens the door to ‘hashish consumption lounges’

Nevada has legalized a new type of hospitality business: the cannabis consumption lounge.

The facilities are allowed to sell THC-containing foods and beverages for local consumption under strict regulations. Other refreshments can also be offered. Whether the selection of THC-free beverages could also include alcoholic beverages is not regulated by law. Entertainment is allowed.

The places require a state license. The license fee for a freestanding lounge – one that isn’t attached to a retail outlet – is $ 10,000.

Places that are not affiliated with a statutory pharmacy can negotiate an agreement that is supplied by one of the sales outlets. The items provided may not look like lollipops or be marketed as candy. You are also not allowed to wear images of mascots or child-friendly characters for marketing purposes.

The facilities must not be located near schools and airport branches are expressly prohibited. The lounges are restricted to adult guests.

The lounges solve a problem for Nevada’s burgeoning legal marijuana trade. Although the sale of THC products for recreational use is legal within the state, public consumption of the items is still a crime. The intent was to encourage the use of marijuana in the user’s home so that driving was not required.

But Nevada is heavily dependent on tourists. Visitors shopping in a pharmacy had no place to consume their purchases. Even if they were staying in a hotel, the property likely advised against smoking in the room.

The lounges are intended to offer visitors a place to pamper.

The law, signed by Governor Steve Sisolak last week, allows state regulators to license up to 20 cannabis use laws in the coming year. More permits may be issued after June 22, 2022, but not at a rate that pushes the number of outlets beyond the number of pharmacies in the state.

As the official name for the new facilities, the term “cannabis consumption lounges” was established by the legislator.