The first licensed cannabis lounge in Nevada – Smoke and Mirrors, operated by Thrive – closed earlier this month, about 14 months after first opening its doors, KLAS reports. Just one state-licensed cannabis lounge – and one operated by the Las Vegas Paiute Tribe, which doesn’t require state licensing – remains operational in Nevada.
Another 21 consumption lounges have been given conditional approval by the state Cannabis Control Board (CCB) but have not opened due to several issues, mostly financing and locations, according to a Nevada Independent report. An additional 10 lounge licenses are reserved for social equity applicants, but none have been utilized.
The closure of Smoke and Mirrors comes as cannabis sales in the state declined in 2024. According to CCB data, taxable cannabis sales from state-licensed retail dispensaries during the 2024 fiscal year — $829 million — was down 17% from 2021.
Cost to open a cannabis consumption lounge may also be a factor, specifically that state law requires lounge operators to have $200,000 in “operational liquidity” before opening their doors. State law also prohibits the lounges from serving cannabis-infused food, allowing only smoking and infused beverages, which could also limit the potential of cannabis lounges in the state. Additionally, state law bans patrons from taking home their “leftovers,” requiring all cannabis purchased at the lounge to be consumed on site.
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