Cannabis cafes could make more headlines this year with California moving to normalize consumption lounges and Massachusetts regulators setting up an entirely new program.
California
On Wednesday, California cafes officially became legal, opening up new opportunities for an industry that has often been required to keep consumption out of the public eye. The scene has long brought together enthusiasts and businesses alike under more unofficial means, including consumption areas, annual competitions in culturally historic local regions, as well as pop-ups scattered throughout the state’s social hubs, but the new rules change that dynamic.
Assembly Bill 1775 officially allows the type of venues that operators and advocates have been lobbying for years, with locations that can operate in the same manner as Amsterdam-style cafes, serving food and drinks prepared on-site, rather than just prepackaged snacks. In addition, licensed operators will be able to host and sell tickets to live events held on their licensed premises.
Las Vegas
The Sacramento State Fair last summer became the first California institution to allow public marijuana sales and consumption, enjoying a 30,000-square-foot consumption lounge. The model even caught the attention of Nevada lawmakers, who are eyeing similar pop-up lounges for music festivals and other events.
In places like Las Vegas, where only a handful of 40 licensed lounges have opened, operators also view the spaces more as customer attractions than revenue generators.
“It’s not a money maker in my eyes,” Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) co-CEO Larry Scheffler previously told Green Market Report, citing regulations that prevent customers from bringing in outside products and typically low consumption volumes compared to alcohol bars.
Massachusetts
Massachusetts is also looking to get into the consumption lounge game, but rather than mimicking another program, it is trying to create a robust program from the ground up. State regulators want to craft a framework designed to avoid pitfalls that have hindered similar initiatives elsewhere.
To that end, the state’s Cannabis Control Commission unveiled draft rules for three license types: supplemental permits for existing dispensaries, stand-alone consumption venues and event organizers. The program will exclusively serve social equity participants and small businesses for its first five years.
Despite the efforts to avoid pitfalls, the state still expects challenges.
“Folks think social consumption is the next green rush or a cash cow, and it’s not,” Commissioner Nurys Camargo told Green Market Report.
The framework includes specific operational requirements; venues must choose between smoking or nonsmoking consumption, provide “cool-down spaces” for adverse reactions, and cease cannabis sales 30 minutes before closing. While alcohol is prohibited, venues can generate additional revenue through food service.
Eight municipalities, including Boston, have expressed early interest in hosting consumption spaces. The public can comment on the proposed regulations through Jan. 23, with regulators targeting a mid-2025 launch for the program.
Whether Massachusetts can set a new standard for American cannabis consumption remains to be seen. Regulators confirmed to GMR that while large entertainment companies like Live Nation could eventually participate in the market, ownership must flow through eligible license holders under the social equity program first.
[[{“value”:”California and Massachusetts are the latest states to work on consumption lounge frameworks.
The post More US markets embrace cannabis cafes, lounges appeared first on Green Market Report.”}]] Read More
