Nevada Cannabis Lounge Licensing Guide

Estimated reading time: 1 minute

Introduction
Licensing Process
Operational Requirements
Compliance Challenges
Why Hire a Cannabis Consultant?
Nevada Cannabis Lounge FAQs
Additional Resources
Consulting Services For Cannabis, Hemp, Psilocybin, and Natural Medicine
Testimonials and Public Relations
Latest Articles
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Free Ebook – Start Your Own Legal Cannabis Business

Cliff Notes: Apply for and obtain a Nevada cannabis lounge license

Objective: Prepare for application of a Nevada cannabis lounge license by understanding the steps required to legally operate a Nevada cannabis lounge.

Key Components:

Legal Framework: Nevada passed AB 341 in 2021, legalizing licensed cannabis consumption lounges under the Cannabis Compliance Board (CCB).
Types of Licenses: Two models – Retail Lounges (connected to dispensaries) and Independent Lounges (standalone businesses).
Licensing Timeline: First round opened in 2024. Social equity applicants receive preference for half of all independent licenses.
Application Requirements: Includes operations plan, diversity/inclusion statement, ventilation specs, and architectural layout.
Compliance: Strict guidelines for ventilation, staff training, overconsumption tracking, and sealed smoking rooms.
Restrictions: No cannabis sales, no alcohol, no minors, and no infused food service without a kitchen license.

Catalyst BC’s cannabis consultants help with license prep, smoking room design, city coordination, and compliance strategies. Learn more about our Nevada cannabis consulting services or Book your Complimentary Consultation today.

Introduction

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). Importantly, the CCB’s rules mandate diversity goals – half of the initial independent lounge licenses will go to social equity applicants.

Licensing Process

Navigating the Nevada cannabis lounge licensing process requires early planning, precise documentation, and an understanding of both state and local regulations. Whether you’re applying as a dispensary or launching an independent lounge, aligning your team and preparing key materials in advance can significantly improve your chances of success. Below is a step-by-step overview of what to expect when applying for a Nevada cannabis lounge license.

1, Application Openings

The CCB opened the first license round will open in Fall 2024. Contact our cannabis consulting team for a timeline on the next round. Prepare now by lining up your team (security, architects) and drafting a diversity/inclusion plan (a required part of the application).

2. Prepare Documentation

Applications requires a completed CCB portal submission, corporate docs, financial statements, and an operations plan. Expect to detail your ventilation design and smoking/non-smoking room layout (as per Regulation 15). The regulations require lounges to have a fully separate, self-contained smoking room with HEPA filtration and a negatively pressured ventilation system.

3. Pay Fees and Prequalification

Anticipate an application fee (likely $4,000-5,000 based on other Nevada adult-use fees) plus an initial license fee. Submit to CCB, then undergo background checks. Social equity candidates should apply early to take advantage of set-asides.

4. Inspections

Once awarded a provisional license, schedule inspections for both security (cameras at every entry/exit and service area) and construction code compliance (fire sprinklers, ADA access, etc.). Only after final approval and payment of the licensing fee can you open to customers.

Operational Requirements

The CCB regulations lay out strict rules. All cannabis smoking/vaping must occur in a designated smoking room that is completely sealed off from the rest of the lounge. Doors must be gasketed and self-closing. Air from that room must be ventilated outside with a continuous 8+ air changes per hour, and all other indoor air must pass through HEPA filtration.

Lounges must maintain logs of overconsumption incidents and train staff on topics like product effects and handling intoxicated patrons. Patrons can only consume cannabis on-site; no product can leave the premises. Food is allowed, but infused edibles cannot be prepared on-site without a kitchen license.

Absolutely no minors (21+) allowed, and joint/jar lockers are required so customers store their cannabis upon entry.

Compliance Challenges

Every lounge must strictly follow the Nevada Cannabis Compliance Regulations and state laws.

Key pitfalls:

Failing to prevent underage entry, allowing patrons to take cannabis outside, or mixing tobacco with cannabis (which is explicitly forbidden).
Security must prevent any diversion; for example, cannabis samples cannot be given away gratis (every product must be tracked via Metrc).
Employee training on preventing impaired driving is now mandatory, and lounges will also need general liability and product liability insurance.
Coordinate with local city/fire departments early – Clark and Washoe Counties have additional licensing prerequisites (e.g. business licenses, fire inspections).

Why Hire a Cannabis Consultant?

Launching a Nevada cannabis lounge involves more than just submitting paperwork—it requires architectural planning, compliance strategy, community engagement, and an airtight operations plan.

Our seasoned Nevada cannabis consultants can help you avoid costly mistakes and delays by guiding you through every phase of the process. From ventilation compliance and diversity planning to local inspections and staff training protocols, Catalyst BC provides end-to-end consulting services tailored to Nevada’s unique regulatory environment. Let our team help you secure your license and open a compliant, profitable lounge faster.

Learn more about our Nevada cannabis consulting services or Book your Complimentary Consultation today.

Nevada Cannabis Lounge FAQs

What types of Nevada cannabis lounge licenses exist?

Nevada has two main categories: Retail Consumption Lounge (for current cannabis retailers or microbusinesses) and Independent Consumption Lounge (freestanding lounge). Both allow on-site smoking/vaping and hospitality services.

Can we sell cannabis at the lounge?

No, consumption lounges themselves cannot sell product. Patrons must already have purchased their cannabis elsewhere. However, lounge operators must ensure all consumed cannabis came from licensed sources (via receipts or secure drop-off).

Is alcohol allowed?

No. NV law still prohibits combining alcohol and cannabis. Nevada cannabis lounges may sell non-alcoholic beverages and snacks, but no liquor.

How big can the smoking room be?

There is no explicit size limit, but it must be a distinct, enclosed space. Some operators opt for small cigar-lounge-style rooms. The key is meeting the ventilation specs: 8 air changes per hour at minimum.

Do we need a diversity plan?

Yes. Nevada mandates a “Diversity Plan” in your application showing how you’ll include women, veterans, minorities, etc., in your ownership and workforce. Social equity applicants get preference. Our Nevada cannabis consulting experts can guide you through the social equity requirements.

Are background checks required for a Nevada cannabis lounge license?

Definitely. Owners and financiers must pass a 3653 background check (no disqualifying felony in the past 10 years, for example). This is a standard requirement for all cannabis licenses in NV.

Should I hire a Nevada cannabis consultant?

Absolutely. Nevada’s cannabis lounge regs are new and technical. Catalyst BC’s Nevada cannabis consultants can help prepare your venue (especially ventilation plans) and guide you through the unique licensing process.

Why should I work with a Cannabis Consultant like Catalyst BC?

Navigating the Nevada cannabis lounge space is complex—one misstep can delay your opening or jeopardize your license. A specialized Cannabis Consultant brings deep regulatory knowledge, operational best practices, and hands-on project management.

From initial concept and licensing to grand opening and ongoing compliance, Catalyst BC’s end-to-end Nevada Cannabis Consulting services ensure you launch faster, stay compliant, and maximize profitability.

Additional Resources

Consulting Services For Cannabis, Hemp, Psilocybin, and Natural Medicine

Testimonials and Public Relations

Latest Articles

Open a Cannabis Consumption Lounge in New Jersey: Getting Started Guide
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.
Open a Cannabis Lounge in New Mexico: Licensing & Compliance Guide
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 Cannabis Lounge License: Guide to Compliance and Success
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.
U.S. Virgin Islands Cannabis Consumption Lounge Getting Started Guide
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 Cannabis Lounge License Guide: What You Need to Know
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).
Are Missouri Cannabis Lounges Legal? Here’s What Entrepreneurs Need to Know
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.

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