LAS VEGAS (FOX5) — Years after cannabis consumption lounges were legalized in Nevada, only one operates regularly for public use statewide.

The Nevada Cannabis Compliance Board tells FOX5, they have issued 28 conditional licenses to prospective operators.

Barriers to opening

Christopher LaPorte, a consultant working with a client seeking to open a cannabis business in Las Vegas’ Arts District, said three major hurdles prevent businesses from opening.

“The first one is perception. Like, what people think these lounges are supposed to be,” LaPorte said.

He said lounges will offer more than smoking spaces and will be designed as destinations.

“It’s going to be a restaurant. It’s going to be a movie theater. There’s going to be anything where you’re just replacing alcohol with cannabis,” LaPorte explained.

The second challenge involves finding real estate. State regulations require lounges to operate at least 1,500 feet from casinos, limiting location options.

“Not every property owner wants to lease to cannabis lounge license holders. And so now you have to ask yourself, if you’re a first-time business owner, and you want to open up your first restaurant, do you have to buy the building too?” LaPorte said.

Funding represents the third obstacle for prospective owners entering the new industry.

State support efforts

Steve Gilbert, chief of administration for the Cannabis Compliance Board, said the agency held a resources fair this week for conditional license holders.

“We know it is difficult. It’s a new industry,” Gilbert said.

Gilbert said the CCB is working to help prospective owners through the licensing process and expressed enthusiasm about proposed business concepts.

“A bowling alley, or a massage parlor or infused products. It’s been remarkable to see, and it will be even more remarkable to see what different business models come to life,” Gilbert said.

LaPorte’s client has held a conditional license for two years. He described her planned business as “a supper club” that will serve “sophisticated food” and “happens to offer you cannabis with it instead of a traditional alcoholic beverage.”

LaPorte predicted growth similar to dispensary expansion after legalization of cannabis in Nevada.

“I’m hoping to see these things open up by next year, no question,” LaPorte said.

The Cannabis Compliance Board provides resources for prospective owners on its website, including presentations from this week’s resource fair.

The only consumption lounge currently open to the public in Nevada is Dazed! which operates at Planet 13 in Las Vegas.

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