Recreational Cannabis

Stay informed on recreational cannabis laws, industry trends, recreational states, business opportunities and market expansion in legal states.

Modern New Jersey cannabis lounge interior design
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Licensing & Applications, New Jersey, Recreational

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.

Modern interior of a licensed New York cannabis lounge
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Licensing & Applications, Cannabis Operations and Optimization, New York, Recreational, United States

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.

Modern cannabis lounge interior design with comfortable seating and stylish decor
Cannabis Business Plans and Strategies, Cannabis Consulting, Recreational, United States, US Virgin Islands

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.

Modern interior design of a Nevada cannabis lounge with stylish seating and ventilation features
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Facility Design, Cannabis Licensing & Applications, Cannabis Operations and Optimization, Recreational

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).

Man smoking cannabis at a Missouri-style private lounge
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Licensing & Applications, Cannabis Operations and Optimization, Laws and Regulations, Recreational, United States

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.

Interior of a modern cannabis lounge similar to potential Minnesota cannabis events.
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Licensing & Applications, Cannabis Operations and Optimization, Minnesota, Recreational, United States

Hosting a Minnesota Cannabis Lounge Event: Tips For Success

/

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.

Interior of a modern Massachusetts cannabis lounge with sleek seating and proper ventilation
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Facility Design, Cannabis Licensing & Applications, Cannabis Operations and Optimization, Laws and Regulations, Recreational

Massachusetts Cannabis Lounge Licensing Preparation Guide

/

Launching a cannabis lounge in Massachusetts requires more than just a great idea—it involves navigating a complex regulatory system at both the municipal and state levels. With the Cannabis Control Commission (CCC) finalizing rules in 2025, now is the time to get prepared. Whether you’re an existing license holder or a new hospitality operator, understanding the specific steps involved will set you up for success.

Interior of a modern Illinois cannabis lounge with dim lighting and lounge seating
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Licensing & Applications, Cannabis Operations and Optimization, Laws and Regulations, Recreational

Illinois Cannabis Lounge: A Guide to Local Licensing

/

Illinois legalized adult-use cannabis in 2019, but social consumption lounges are governed at the local level. The Cannabis Regulation and Tax Act expressly permits on-site consumption areas, but only if a city or county authorizes them. The state law did not initially create a standalone lounge license; instead, municipalities may allow existing dispensaries or tobacco shops to host “cannabis consumption lounges”.

Interior of a modern Colorado cannabis lounge with on-site consumption area
Cannabis Business Plans and Strategies, Cannabis Consulting, Cannabis Licensing & Applications, Cannabis Operations and Optimization, Colorado, Laws and Regulations, Recreational

Colorado Cannabis Lounge License: A Guide to Compliance and Success

/

Colorado law permits licensed on-site cannabis consumption spaces (often called “marijuana hospitality establishments”) with both state and local approval. The Marijuana Enforcement Division (MED) of the Colorado Department of Revenue issues two lounge-style licenses: a Marijuana Hospitality Business License (for consumption only) and a Retail Marijuana Hospitality and Sales Business License (for consumption and on-site sales).