Nevada awards six more cannabis consumption lounge permits

Nevada marijuana regulators awarded six new cannabis consumption permits via lottery, in a move to further expand the tourist-heavy state’s attractions for ganja fans.

According to a news release from the Nevada Cannabis Compliance Board, the winners included Kora Cannabis Lounge LLP, Nevada Consumption Lounge LLP, and four other businesses that did not agree to have their identities made public.

All six of the winners were social equity applicants, the board said, and the licenses are still “prospective,” meaning not yet finalized.

The lottery was held for the second time this week after an original drawing was found by an internal audit to have picked six entrepreneurs who didn’t meet state residency requirements for licensure. In the second round, eight new applicants were entered into the lottery.

The board is issuing refunds for the $2,500 license application fee to those not selected.

The new market entrants will join at least two other consumption lounges that have opened in Las Vegas as of last month, with another 38 reportedly in the pipeline. The business model has not proven itself as quickly as retail sales, with lounges acting more as side attractions for consumers than actual revenue drivers.

At that time, Planet 13’s Larry Scheffler told Green Market Report that “It’s not a money maker in my eyes,” mostly because of restrictions on outside products.