Las Vegas is known for its vibrant nightlife and numerous attractions, yet its ambition to become a hotbed for cannabis tourism, akin to Amsterdam, faces significant challenges.
The first state-regulated cannabis consumption lounge, Thrive Cannabis Marketplace’s Smoke and Mirrors, ceased operations in April after just over a year in business.
Thrive’s managing partner, Mitch Britten, stated in an interview that the venue will transition to a special event space until state regulations evolve to support a sustainable business model for such lounges.
Britten articulated the concerns surrounding the current regulatory framework, which imposes compliance costs and restricts the types of products that can be offered, making it difficult for lounges to thrive financially.
Currently, only one other state-sanctioned lounge, Dazed, remains operational at the Planet 13 dispensary.
Additionally, Sky High Lounge, established in 2019, operates on Las Vegas Paiute land and is not subject to state regulations.
Recreational cannabis was legalized in Nevada in 2017, and a licensing program for consumption lounges was approved by state legislators in 2021.
Despite these advancements, cannabis remains classified as a Schedule 1 controlled substance at the federal level, alongside drugs like heroin and LSD.
This classification complicates the legal landscape for cannabis tourism, as public consumption is prohibited and delivery to hotels is illegal, forcing tourists to seek alternative locations for consumption, often in less than suitable environments like garages or sidewalks.
To delve deeper into the intersecting worlds of cannabis and tourism in Nevada, I recently spoke with Riana Durrett, the former director of the Nevada Dispensary Association and the current director of the Cannabis Policy Institute at the University of Nevada, Las Vegas.
In our conversation, Durrett highlighted crucial points regarding cannabis consumption for tourists visiting Las Vegas.
She emphasized that public consumption is illegal and that tourists should be wary of delivery services that may appear legitimate but are not operating within the law.
The question of why the Thrive lounge failed while others remain unopened is a testament to the complexities of the cannabis business model.
According to Durrett, while there is a significant market for cannabis, it is generally consumed wherever individuals see fit, diminishing the necessity for dedicated consumption lounges.
She stated that Americans widely use cannabis, so the mere existence of a lounge may not attract patrons, especially if the lounge is largely limited to consumption without offering additional compelling reasons for visitation.
Durrett stated, “We don’t call Allegiant Stadium an alcohol consumption lounge. People go to the stadium for events; they consume alcohol there but for a different reason.”
This underscores the idea that without additional attractors, such as entertainment or socializing opportunities, lounges may struggle to draw in customers.
Furthermore, the landscape of cannabis consumption has evolved, with the advent of discreet products like vape pens and edibles, which eliminate the stigma and complications surrounding marijuana use in public.
Consequently, Durrett believes that while there is potential for cannabis tourism in Nevada, the traditional consumption lounge model might fall short.
She pointed out that the legal cannabis industry in Nevada faces significant hurdles that limit tourism opportunities, primarily grounded in regulatory restrictions.
For instance, regulations impacting delivery services, particularly in the desirably high-traffic areas like the Strip, create a vacuum that unlicensed retailers quickly fill.
Durrett remarked, “Where the legal industry is limited, the illegal market will step in. Those limitations don’t necessarily reduce sales or consumption; they just determine who is conducting the sales.”
Clearly, avenues for legal cannabis businesses are hampered not only by regulations within the state but also by the overarching federal classification of cannabis.
As for the discussions around rescheduling cannabis at the federal level, Durrett noted that momentum seems to have slowed.
Currently, there is some legislative discussion around the Prepare Act, which would establish a commission to explore various issues related to cannabis legalization.
Durrett expressed cautious optimism about the Prepare Act, suggesting it could be a significant step forward.
She lamented that federal avenues have not yet addressed the array of challenges related to the surging market of psychoactive hemp products, which are currently unregulated and widely available.
“This industry is booming and prevalent in Nevada, but no one is truly equipped to manage it — neither the states nor the federal government,” she added.
In conclusion, while the dream of Las Vegas transforming into a cannabis tourism hub akin to Amsterdam remains a possibility on the horizon, the existing regulatory, economic, and consumer behavior challenges paint a complex picture that may take time to navigate.
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