As the cannabis industry continues to expand in Nevada, pressure is mounting for the state’s powerful gaming sector to revisit its longstanding policy barring ties to marijuana businesses.

During a recent panel hosted by UNLV’s Cannabis Policy Institute, former Nevada Gaming Control Board member Terry Johnson raised the possibility of reevaluating a 2014 memorandum that warned casinos against working with cannabis companies. “I don’t see why you wouldn’t pull out that memo and say, ‘Does this even matter now?'” Johnson said, as reported by the Nevada Independent.

The call for reconsideration comes amid signs of progress and ongoing tension. Nevada legalized recreational cannabis in 2016, and nearly 100 dispensaries now operate statewide, including several on the Las Vegas Strip. However, only two cannabis consumption lounges are currently open in Las Vegas, leaving the tourism potential largely untapped. Complicating matters, cannabis remains a federally classified Schedule 1 controlled substance, putting casinos at risk of federal scrutiny if they partner with marijuana operators.

In his time as a regulator, Johnson noted the absence of significant issues stemming from the cannabis sector. “Looking back as a former regulator, we didn’t have the types of disruptions or negative publicity or any adverse events related to cannabis and gaming,” he said. “That’s a good sign. Maybe that’s a reflection of trying to recalibrate the regulatory position accordingly.”

Andrew Schorr, a panelist and cannabis business executive, pointed to the potential economic benefits of collaboration. “If the gaming industry were able to collaborate with the cannabis industry, I think it would look like an entirely different world,” Schorr said. “I think that if the laws allowed it, there would be certain properties that partner with certain cannabis operators, and they would create experiences for the market. I don’t know that every single casino would embrace this.”

Meanwhile, other developments continue to shape Las Vegas tourism. Ellis Island Hotel and Casino has resolved its legal issues with Formula One and will now participate in the 2025 Las Vegas Grand Prix. In contrast, Derek Stevens has confirmed that his rumored new casino project remains years away. Separately, Wynn Resorts has exited the New York City casino race, citing better opportunities elsewhere.