Opening a dispensary is one of the most exciting — and challenging — opportunities in today’s cannabis industry. With consumer demand rising, states continue to open limited licensing windows for new operators. The key to standing out is a strong, compliant, and well-prepared Cannabis Dispensary License application.
The upcoming release of the Nebraska Cannabis Dispensary License and limited processing licenses represents a unique but highly competitive opportunity for entrepreneurs. Early preparation will give applicants the best chance of success by ensuring compliance, financial readiness, and operational excellence.
New Jersey’s adult-use law allows “cannabis consumption areas,” but only as an endorsement to existing licenses. The Cannabis Regulatory Commission (CRC) decided not to create a new license class; instead, licensed Class 5 retailers (or permitted medical dispensaries) can apply for a Consumption Area Endorsement to their facility. This means only approved dispensaries (currently still coming online in NJ) can add a 21+ onsite use room. Applications for consumption area endorsements opened in January 2025.
New Mexico’s Cannabis Regulation Act (2021) explicitly authorizes On-Site Consumption Area licenses (often called “consumption lounge” permits) under the NM Cannabis Control Division (CCD). The CCD issues two types of permits: Type I (non-smoking, edibles/vapor) and Type II (smoking allowed). A consumption area license lets a venue legally serve non-infused snacks/beverages and allow consumption of cannabis products by patrons age 21+. These can be standalone lounges or add-ons to other licensees (e.g. a dispensary or restaurant that obtains a consumption license).
New York State law provides for adult-use on-site consumption licenses under the Office of Cannabis Management (OCM). As of 2025, New York is still in the early stages of issuing these licenses; only a handful of trial licenses have been granted. The Cannabis Law caps investment (no person can hold more than 3 consumption licenses) and prohibits vertical integration: lounge licensees cannot also hold dispensary, cultivation, or processor licenses. This was done to ensure lounges operate solely as consumption venues, not as sales outlets. Learn how to navigate the rules to successfully apply for your lounge license.
The U.S. Virgin Islands legalized adult-use cannabis in 2023, and its regulators have explicitly created consumption lounge permits. Under the Virgin Islands Cannabis Regulatory Advisory Board’s rules (approved April 2024), a qualified operator can obtain an Adult-Use Lounge Permit. This permit allows on-site cannabis consumption by adults 21+ in a designated area. Unlike many states, the USVI permits both smoking and non-smoking lounges, provided you choose the correct permit type.
Nevada has enthusiastically embraced consumption lounges. In 2021, Governor Sisolak signed AB 341 authorizing the Nevada Cannabis Compliance Board (CCB) to license cannabis consumption lounges. After extensive stakeholder work, the CCB approved final regulations in late 2023. Lounges are split into two types: Retail Lounges (operated by licensed dispensaries or microbusinesses) and Independent Lounges (standalone sites).
Missouri’s adult-use legalization (Amendment 3, 2022) did not establish any state license for cannabis lounges. Consequently, there is no state-regulated consumption lounge for recreational cannabis at this time. Instead, an underground network of private, membership-only clubs has emerged.
Minnesota’s adult-use cannabis law (2023) does not create a permanent lounge license, but it allows temporary consumption events via a Cannabis Event Organizer license for up to four-day events (like festivals) where licensed retailers can sell cannabis and patrons may consume on-site. A licensed event organizer must obtain local approval and permits for each event.
