Nevada Officials Give Final Approval To State’s First Marijuana Consumption Lounge, Set To Open This Month

Nevada marijuana regulators have approved the state’s first cannabis consumption lounge, which will open its doors to adult consumers later this month.

Thrive Cannabis Marketplace announced on Thursday that it received the inaugural approval for its “Smoke and Mirrors” facility in Las Vegas, allowing it to begin serving consumers a curated selection of marijuana products and non-alcoholic THC-infused beverages.

The Nevada Cannabis Control Board (CCB) approved an initial batch of consumption lounge licensees last June, which came after regulators gave preliminary approval to 40 prospective hospitality businesses. Thrive was one of the three businesses to receive that approval last year, enabling it to build out the lounge and open pending a final inspection that was completed on Tuesday.

“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,” Mitch Britten, CEO of Thrive, said in a press release. “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 is designed to “seamlessly transition from the dispensary storefront” to the social consumption area. In addition to serving cannabis products and infused drinks, the lounge will also host artists, musicians and events such as product launches.

CCB said in a press release that there are currently 19 lounges that have been approved for a conditional license, including 14 retail-attached and five independent lounges.

CCB Issues Final License for First Cannabis Consumption Lounge in Nevada. Read more: https://t.co/WYPcJTRJSCpic.twitter.com/gA8H7vktIC

— Nevada Cannabis Compliance Board (@NevadaCCB) February 15, 2024

Tyler Klimas, who served as executive director of the CCB from 2020 to late 2023, said in a podcast published last month that the cannabis consumption lounge development represents the “next frontier” for the industry.

The law—which was enacted under legislation from Assemblyman Steve Yeager (D) and signed by former Gov. Steve Sisolak (D) in 2021—also allows for businesses that couple cannabis with yoga, serve infused food, offer THC-aided massage therapy or incorporate marijuana in other ways.

Sisolak touted Nevada’s lounge law in a 4/20 op-ed for Marijuana Moment in 2022, writing: “The idea isn’t new, but no one is doing it like we are in Nevada.”

“While most of the consumption lounges in other states don’t offer food, beverages or other entertainment options,” he said, “Nevada’s lounges will be a one-stop entertainment shop to create jobs, grow the industry and boost our economy.”

Under the board-approved rules, consumption must be hidden from public view. Smoking and vaping must take place in a separate room of the lounge or be prohibited entirely. Single-use or ready-to-consume cannabis products can’t be brought off-site. And businesses must provide water to every guest free of charge.

The lounges will also be cannabis-only. No alcohol, tobacco or nicotine products can be sold.

Other safety-related regulations require lounges to establish plans to limit cannabis-impaired driving and minimize workers’ exposure to secondhand smoke. Guns are prohibited, surveillance is required and procedures must be in place to reduce and respond to potentially violent or harassing behavior.

Single-use cannabis products are limited to no more than 3.5 grams of usable cannabis under the regulations, with “extracted inhalable cannabis products” (such as vaping or dabbing products) limited to 300 milligrams of THC. All single-use products with more than 1 gram of usable cannabis, and all extracted inhalables, must carry written potency warnings.

Individual servings of ready-to-consume edible products are capped at 10 milligrams THC, a fairly standard amount in states that have legalized cannabis for adult use.

Topicals, meanwhile, are limited to 400 milligrams of THC. Transdermal patches and all other cannabis products can have no more than 100 milligrams THC and must carry a written warning if they have more than 10 milligrams.

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As consumption lounges prepare to open, the state’s marijuana laws changed in another meaningful way at the beginning of this year, with a new policy in place that more than doubles the amount of cannabis that a person can buy and possess to 2.5 ounces.

Recreational retailers will also become authorized to serve medical cannabis patients as well, without having to get a separate license.

The new law came into effect under a large-scale marijuana reform bill that Gov. Joe Lombardo (R) signed into law in June. The legislation also broadens eligibility for participation in the market by people with prior felony convictions.

Meanwhile, Nevada officials recently adopted a proposal to amend hiring standards for police officers to allow job candidates who were previously disqualified for certain marijuana-related offenses to now be eligible for law enforcement positions.

Separately, as Nevada advocates continue the push for psychedelics reform, a joint legislative committee held a hearing last month with expert and public testimony on the therapeutic potential of substances like psilocybin.

Last May, the state Senate also approved a resolution urging Congress to federally legalize marijuana, and the Nevada State Athletic Commission (NSAC) voted to send a proposed regulatory amendment to the governor that would formally protect athletes from being penalized over using or possessing marijuana in compliance with state law.

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