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Table of contents
Cliff Notes: US Virgin Islands Cannabis Lounge License Rules and Guidelines
Objective: Build a strong cannabis brand using effective branding elements and a comprehensive marketing strategy that includes digital strategies, influencer partnerships, and consumer education.
Key Components: Understand the US Virgin Islands’ newly established cannabis consumption lounge permits, including licensing types, operational requirements, and how to successfully launch a compliant venue
- Three Permit Options – The U.S. Virgin Islands offers Adult-Use Lounge, On-Site Use, and Temporary Use Permits, giving operators flexibility based on their business model.
- Lounge Restrictions – Lounges cannot sell cannabis directly; patrons must bring their own legally purchased products.
- Smoking vs. Non-Smoking Lounges – Operators must plan for ventilation or outdoor use if smoking is permitted; indoor smoking is allowed with proper systems.
- Compliance is Key – Businesses must submit detailed plans including security, ventilation, and proof of business structure through the Cannabis Office portal.
- Employee Certification – All staff interacting with cannabis must obtain a VI cannabis handler permit.
- Events & Temporary Use – Short-term consumption events (up to 72 hours) are allowed under Temporary Use Permits with strict conditions.
- Unique Local Considerations – Proximity to federal properties, adherence to the Smoke-Free Act, and tourism-centric logistics make localized consulting essential.
Looking to launch a cannabis consumption lounge in the US Virgin Islands? Partner with Catalyst BC, your trusted USVI cannabis consulting firm with deep experience in regulated markets. From licensing and compliance to venue design and post-launch optimization, our team ensures your lounge is fully compliant, scalable, and built for success. Schedule a complimentary consultation with our USVI cannabis experts today.
Introduction
The US 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.
Permit Types and Process:
Adult-Use Lounge Permit
Grants a business the ability to allow customers to consume cannabis on-site in a specially licensed area. You cannot sell cannabis in the lounge itself – patrons must bring their own legally purchased product, and no product may exit the lounge. Only a licensed cannabis dispensary can own and operate an Adult-Use Lounge (so far, the law anticipates lounges attached to licensed retailers).
On-Site Cannabis Use Permit
Similar in effect, this permit covers designated consumption areas perhaps not tied to a dispensary. It authorizes the restricted consumption of cannabis products in a licensed area by adults.
Temporary Use Permit
Allows short-term events with on-site consumption. This is for occasional festivals or gatherings lasting no more than 72 hours, where cannabis can be served or consumed under strict conditions.
Application Process
To apply, one must register on the Virgin Islands Office of Cannabis Regulations (USVI OCR) portal, pay the applicable fees, and provide detailed venue plans. Requirements include a security plan, a ventilation or outdoor area plan (smoking indoors still requires strong ventilation), and proof of business structure. All employees interacting with cannabis must hold a Virgin Islands cannabis handler permit.
Key Operational Rules
- Per VI regulations, no cannabis sales or giveaways are allowed in a lounge – it is strictly for consumption.
- The lounge may have a small food/beverage service area (non-infused), but it cannot sell cannabis.
- Signage is required to warn patrons of health risks. If smoking is permitted, lounges must follow the Virgin Islands Smoke-Free Act: smoking cannabis is not considered smoking under that Act, meaning lounges can designate smoking rooms (with ventilation) without running afoul of general smoke bans.
- The regulator’s example text clarifies that lounges may serve as “on-site Designated Consumption Areas” once licensed.
- All normal cannabis business rules apply: 21+ only, secure storage for purchased product, ID checking at entry, and no consumption beyond the lounge.
Compliance Considerations
Because the VI law is new (effective 2023), some guidance is still evolving.
- Applicants should ensure local building codes for public accommodations are met. Unlike many U.S. states, the VI explicitly allows lounges, so compliance largely follows what land-based lounges do.
- Maintain joint lockers or outlets so patrons check their cannabis at entry (some lounges use special slots that only open when the patron swipes ID).
- Train staff on overconsumption protocols (offering taxis or sleeping it off in a lounge “quiet room”).
- Because VI is a U.S. territory, venues near federal property (like embassies on St. Thomas) might have extra restrictions.
- Taxes and fees will apply: lounges are subject to the same 18% sales tax on cannabis as other retailers, though they don’t sell product themselves, and local business taxes as any nightclub or bar would.
Why Hire a USVI Cannabis Consultant?
Opening a cannabis consumption lounge in the US Virgin Islands isn’t just about a great idea and a beautiful space—it’s about meeting detailed, evolving compliance standards in a brand-new market. From navigating permit types and facility design to ensuring your staff is properly trained and certified, a USVI cannabis consultant can save you time, money, and costly mistakes.
Catalyst BC brings over 50 years of combined experience in regulated cannabis markets, facility design, and compliance. Our consultants are deeply familiar with the US Virgin Islands’ cannabis regulations and work hand-in-hand with your team to:
- Prepare and submit complete, compelling permit applications
- Design compliant, efficient consumption lounges
- Develop operating procedures for safety and overconsumption protocols
- Train staff on VI-specific cannabis handler requirements
- Support post-licensing operations and future growth
Don’t risk your investment or licensure. Work with Catalyst BC to bring your USVI cannabis lounge to life—compliantly, confidently, and successfully.
Learn more about our USVI cannabis consulting services or contact us today for your complimentary consultation.
US Virgin Islands Cannabis Lounge FAQs
Yes. The law authorizes Adult-Use Lounge Permits and On-Site Cannabis Use Permits specifically for consumption venues. This makes the VI one of the few U.S. jurisdictions explicitly licensing lounges.
Only a licensed cannabis dispensary (Adult-Use licensee) can operate an Adult-Use Lounge. Other businesses (like restaurants) cannot get this permit unless they first hold the appropriate cannabis license.
They may provide space where customers can consume cannabis products (vape, smoke, edible) on-site. Lounges cannot sell cannabis on the premises; all cannabis must come from licensed retailers and remain in approved containers. Our experienced USVI cannabis consultants can educate you on what is allowed, not allowed, and best practices for success.
Yes, lounges can serve non-infused snacks and non-alcoholic beverages. No alcohol service is allowed. They can also have music or events, but must comply with local noise ordinances.
Anyone serving or advising on cannabis must have a VI cannabis handler permit (similar to a bartender license). They should be trained in emergency response for overconsumption.
Yes, if you obtain the permit that allows smoking (all VI lounges may choose to allow it). The regulations clarify that cannabis smoking lounges are still subject to ventilation requirements, but are not banned by general smoke-free laws.
The VI Department of Licensing and Consumer Affairs oversees permits. Regular inspections will check for underage patrons, required signage, and that no sale of cannabis occurs in the lounge. Violations can result in license revocation. Catalyst BC’s USVI cannabis consultants can guide you through proactive processes to ensure your lounge remains compliant and inspection-ready.
Yes. Despite being progressive, the VI market is small and competitive. Catalyst BC’s USVI cannabis consultants can navigate the new OCR licensing system, local permitting, and launch your lounge smoothly.
Navigating the cannabis lounge space is complex—one misstep can delay your opening or jeopardize your license. A specialized USVI 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 USVI Cannabis Consulting services ensure you launch faster, stay compliant, and maximize profitability.
Additional Resources
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