The Rise of Cannabis Consumption Bars

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The State of Cannabis Today
Cannabis Consumption Lounges
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In 2012, voters in Washington and Colorado legalized the sale and recreational use of cannabis/marijuana, becoming the first states to do so. Nineteen other states would legalize it during the next decade. Some cultivars of the cannabis plant – often known as marijuana or strains – contain active ingredients such as cannabinoids, terpenes, and flavonoids which, when consumed, cause a range of effects.

The State of Cannabis Today

Today, most citizens and lawmakers support marijuana legalization, and many opponents are also shifting their positions on the matter. In addition, state legislatures are debating whether and how to legalize cannabis, and Congress has introduced various marijuana-related proposals, including ones that will ultimately decriminalize cannabis at the federal level.

The House passed a marijuana decriminalization measure in early April last year, and numerous senators presented the Cannabis Administration and Opportunity Act. On October 7, 2022, President Joe Biden announced that he would grant pardons to all convicted of simple marijuana possession and urged governors to do the same.

This Act marked a significant turning point in the movement to reduce penalties for marijuana use. The declaration will affect approximately 6,500 Americans, but a senior White House official explained that currently, no one is incarcerated for essential marijuana possession. Cannabis advocates continue to view cannabis and cannabis products as revenue generators for states. Cannabis has also become an initiative for social justice.

The disparate impact of marijuana restrictions on minority populations has contributed to mass imprisonment. States that have legalized marijuana have attempted to address the problems of marijuana prohibition retrospectively.

Recreational or Adult-Use marijuana has been approved in the following states

Illinois
Arizona
Montana
New Jersey
New York
Virginia
New Mexico
Connecticut
Rhode Island
Maryland
Missouri
Colorado
Washington
Alaska
Oregon
Washington, D.C.
California
Maine
Massachusetts
Nevada
Michigan
Vermont
Guam

Cannabis Consumption Lounges

Cannabis prohibition is not yet gone, but it is safe to assume it is on its way out. The rise of cannabis consumption in lounges, bars, and social-use settings is the loudest and happiest signal of the death of prohibition. With historic states like California and cities like Las Vegas having already legalized marijuana lounges, the day is not far off when people can consume cannabis and cannabis-infused cuisine at these establishments just as they would alcohol.

With 2023 shaping up to be ”the Year of Cannabis,” astute restaurant and bar owners must embrace the business by studying what is legitimate (and what is not) and, most importantly, where an enterprise can set up shop for anything cannabis-related.

New cannabis marketplaces are fast emerging. In addition, four states, including Virginia, New York, New Jersey, and Connecticut, passed laws legalizing marijuana for recreational use two years ago. As a result, market revenues should continue increasing this year despite market/industry hiccups in other states.

New entrepreneurs should be ready for delays in launching, as cannabis is a heavily regulated sector. As states continue to legalize recreational marijuana, it is essential to keep in mind that landlords, real estate agents, city zoning boards, and state regulators are learning how to operate cannabis. Each step takes significantly longer than in other businesses and carries with it some risks as you await regulatory approval before you can begin earning any profit from your new cannabis venture.

Any event, including ”cannabis gastronomy,” must be held privately. More venues are starting to appear, but the number is still tiny. The same holds for lounges and cannabis social clubs.

Cannabis consumption lounges are facilities that permit public cannabis usage on-site. Consider it a bar for weed. In most areas, they are prohibited from selling cannabis goods, while the new law in Nevada will permit the sale of single-use items, challenging this paradigm. The primary service they provide is a safe and legal environment for consumption. This is especially relevant in Las Vegas, where cannabis consumption is prohibited in hotels and public venues, leaving tourists without options to consume their cannabis purchases legally.

With safety in mind, adult-use states have been stringent about prohibiting the combination of cannabis and alcohol in beverages, similar to the crackdown on caffeinated alcoholic beverages.

Edibles are a fast-expanding category in many adult-use states. These new cannabis enterprises appeal to consumers seeking discrete and healthy alternatives to inhalation. We are even beginning to see ”cannabis chefs” who offer complete cannabis-infused meal courses. Food is a known delivery mechanism and is a good landing site for cannabis consumers concerned about inhalable products. Therefore, we anticipate that the concept will become widely accepted over time.

Whenever a state goes online, advisory groups and task forces of professionals and interested parties are formed or recruited. Developing expertise and a vast network of industry experts will increase your chances of being invited as a panelist or audience member. This work and exposure to rules, legislation, and subject matter experts (SMEs) is invaluable.

Alternately, we recommend that you frequently visit your state’s regulatory agency’s website, as many offer newsletters and email lists to which you can subscribe for updates on proposed changes to cannabis rules.

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.