Nevada’s first state-licensed cannabis consumption lounge is closing to the public.

Thrive Cannabis said Smoke and Mirrors, located on South Sammy Davis Jr. Drive in Las Vegas, is pivoting to a cannabis-friendly, special event venue. The company said the change is temporary as it awaits regulatory updates that would make the license type “more economically viable.”

“In their current form, lounges continue to struggle with an overly stringent regulatory framework, extraordinary compliance costs, and a severe limitation of products they can offer,” said Mitch Britten, CEO of Thrive Cannabis. “In our minds, the foregoing issues don’t support a sustainable business model.”

Smoke and Mirrors opened in February 2024 next to the existing Thrive Cannabis Marketplace. It served THC-infused signature cocktails and “bud beers,” alongside other combustible cannabis offerings.

In November 2024, Thrive was approved for a land use entitlement for a consumption lounge, adjacent to its current dispensary on Main Street in Downtown Las Vegas. According to Britten, the intention for the space would be a “sublease type arrangement,” with Thrive acting as the landlord and an independent or social equity licensee as the tenant and operator.

“That location is still very much ‘in play’ but not as a Thrive lounge,” said Britten.

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.