Nevada legalized cannabis without really considering its impact on the Las Vegas Strip.
In theory, it’s a positive to add another legal sin to the list of things you can do in Las Vegas. Tourists certainly felt that way as legal cannabis has become a big piece, at least for some people, of the Las Vegas experience.
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People who may not partake in their regular lives, give themselves to indulge because they’re on vacation and, well, what happens in Vegas, stays in Vegas. The problem, and it’s a big one, is that Nevada’s law legalizing cannabis only allows for it to be smoked and consumed in private homes.
That’s not an issue for people ingesting edibles. While taking edibles was technically not allowed in public spaces or your hotel room, nobody can tell which gummy bear or chocolate bar you happen to be eating.
When it comes to smoking marijuana, however, it’s not actually legal anywhere on the Las Vegas Strip. You can’t smoke in your hotel room, and because of federal laws, casinos cannot offer consumption lounges, even after Nevada legalized them.
That new law has led to the leading cannabis retailer, Planet13 (PLNHF) , creating its own legal consumption lounge. The problem is that while it offers people a legal place to smoke pot, which should lessen them doing it in casino parking lots or breaking the rules by smoking in their rooms, it also takes them away from the Strip.
It’s not legal to smoke cannabis in a Las Vegas casino.
Image source: Sandy Huffaker/Corbis via Getty Images
Las Vegas casinos have new competition
Las Vegas casinos are essentially land-based cruise ships. They offer everything from your hotel room to gambling, spas, bars, shopping, countless restaurants, shows, and other entertainment offerings. Basically, casinos individually, and the Las Vegas Strip more broadly want to offer everything so nobody ever leaves.
That’s why the Strip has added the NHL’s Las Vegas Golden Knights and the Las Vegas Raiders, who play on the Strip and just off the Strip respectively. It’s why the Strip will add a Major League Baseball team, the former Oakland A’s in a new stadium being built on the site of the former Tropicana, and why it will eventually add an NBA team.
Caesars Entertainment, MGM Resorts International, Wynn Resorts, and other Las Vegas Strip players don’t want customers leaving the Strip or spending money elsewhere. They would prefer to keep people in their resorts, but keeping on the Strip for as much of their trip as possible.
Pushing legal cannabis consumption off the Strip could be dangerous if multiple operators follow the lead of Planet 13, which has built a cannabis consumption destination that could keep people away from the Strip.
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Planet 13 built a cannabis destination
Planet 13 has always been a shopping destination as it’s a huge store that offers pretty much any THC or CBD product you could imagine. It offered some museum-like features, a restaurant, and a coffee shop, but it would likely only captivate customers for an hour or two before they went back to the Strip.
In April. the company opened Dazed! “a first-of-its-kind, 3,000 square foot, high-end consumption lounge featuring VIP booths, expertly crafted canna-cocktails, and top-tier entertainment,” the company shared on its website.
Dazed on its own, of course, won’t impact the Las Vegas Strip, but it’s a blueprint for cannabis consumption lounges that take business away from bars, shows, casinos, and other Strip activities.
Planet 13 calls it a premium experience.
“Guests will be welcomed through a speak-easy inspired secret phone booth door, beneath a striking bong chandelier, and into a realm of eclectic artistry designed to captivate the senses. Offering versatile seating options for any occasion, from intimate solo sessions to lively group celebrations, every corner of Dazed provides a unique perspective and experience of the lounge,” the company added.
Cannabis consumption lounges cannot sell alcohol, and Planet 13 gave up its liquor license before opening Dazed. The space offers reservable VIP booths ‘each equipped with personal flatscreen TVs and table service. Delve into the menu, to discover an array of premium cannabis products, from edibles and flowers to concentrates and vapes, complemented by top-tier smoking devices to elevate the experience. Indulge in specialty crafted canna-cocktails, offering a distinctive way to savor delightful beverages with friends,” Planet 13 shared.
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