Are cannabis lounges a great idea or just a gimmick? Here’s what you need to know…

Before the end of the year, cannabis lounges could make their way to Sin City – Las Vegas, Nevada.

On May 1, in a 4-1 vote, the Las Vegas City Council passed an ordinance that will allow retail cannabis shops to apply for special permits to open up lounges. Cannabis customers will be able to buy and use marijuana in the same location.

There are some restrictions. These operations need to be at least 1,000 feet away from casinos and schools, and there will also need to be air control plans that prevent smoke from getting out.

Also, alcohol will not be allowed in the lounges.

I’ve previously written that I’m not the biggest fan of this concept. I don’t think the industry needs “bars” for cannabis. It could encourage overconsumption and impaired driving, which is especially an issue considering that there still needs to be work done to create an accurate cannabis breathalyzer, which I talked to you about last week.

Ultimately, I don’t think there needs to be pot lounges for the industry to succeed.

However, I do think this solidifies one thing, and it’s going to benefit a wide range of those involved in the cannabis industry.

It’s something that I want to make sure you’re watching, because it’s really going to benefit cultivators and some of our top portfolio picks…

Why Cannabis Firms Have to Be in Las Vegas

The biggest takeaway from this news is that Las Vegas has now become the premier cannabis tourism destination in the country, and it will impact both dispensaries and cultivators.

It’s a huge market right now, with $425 million worth of recreational sales in just the first year of legalization. In comparison, Colorado sold $303 million in its first full year of legalization, Washington sold $259 million, and Oregon sold $241 million.

The U.S. could be on the verge of full cannabis legalization. An early investment in cannabis, before the big dogs get in, has the potential to yield once-in-a-lifetime returns. Click here to find out why John Boehner is “all in” on cannabis – and why you should consider it, too.

So if a company has national ambitions, it needs to be in Las Vegas. Less than two weeks into full legalization in Nevada, the 47 retailers licensed to sell cannabis were running out of product to sell.

With such a large demand because of the amount of tourists the state attracts, cultivators will have plenty of work to do to keep cannabis on the shelves of dispensaries, especially considering that consuming it will now be easier for out of town visitors who were previously restricted in where they could consume marijuana. If you want to learn more about how to find the best cultivators through NICILytics, you can click here to identify the best of the best.

In terms of branding, cultivators have to be in Nevada dispensaries and make attractive products.

Purchasing cannabis in Nevada could likely be someone’s first introduction to the legal market. If a cultivator can win over a tourist in Las Vegas, they could likely have a life-long customer who will always buy that brand.

Winning over that first customer is also why it’s so important for the packaging to quickly and easily identify the benefits or differentiating factors about why someone should try that product. Whether it be that the product is organic, cheaper, or has something else that makes it special, it needs to be clearly stated and draw the customer in.

Branding is so important that I just created a thorough report about it for the members of Cannabis Insider’s Report.

In conclusion, while the introduction of cannabis lounges is newsworthy, I want you to understand the bigger story playing out.

Las Vegas is the premiere destination for cannabis tourists, and a company that wants to make it in this industry needs a presence there.


Greg Miller

Executive Director, National Institute for Cannabis Investors

PS: The cannabis market has grown from a few small micro caps to a universe of over 150 tradeable stocks in just a few short years. This can be overwhelming as a new investor. That’s why we compiled our NICILytics database. Together, our team of experts combed through every cannabis stock in existence, looking at their management history, their finances, their 5- and even 10-year plan. And if you click here, we can show you how to get this invaluable investing tool at your fingertips in a matter of minutes.


Comments

13 responses to “What I Really Think About Cannabis Lounges”

  1. Morning Greg how are you? As usual good follow up, I am not surprised that people are considering it. After all it is a recreational product and no more than we like seeing people stand on street corners consuming alcohol. I am sure it is just as unappealing seeing people walk up and down the street smoking cannabis. Where there is a way to make money smart people will at least make some inquiries!!! Have a great day Greg and thank you again I am all in with you!!!!

  2. Thank you for all you do Greg. I really appreciate you and all the team.You make this so easy for me and your customer service team has always been wonderful!. I have 2 questions. Is there a list that tells which companies are in Vegas. How do we find out. And off the subject I did not se Chemesis International in the Vault out of Columbia. Is there a reason for that and how do you feel about them. I had already bought some and don’t know if I should keep it. Thanks so much. Sandy

  3. Planet 13 Holdings (OTC: PLNHF) is a cannabis super-store in Las Vegas that carries or will carry many brands. And it can be traded. Not sure if it’s a good buy or if Greg has an opinion on them? Looks like this place could be a Mecca for tourists coming in from non-rec states.

  4. I will be moving to Nevada in September and would like to invest some money in marijuana, please let me know your thoughts on how and what I should invest in.

  5. Greg is amazing and certainly deserves your full attention!!
    Regarding your planned move to Las Vegas (Shaista)…
    I found something interesting and you can also by googling FUNDANNA.
    Good luck and happy and profitable investing!!

  6. I agree with Jeff Brown’s comment. There should be lounges available to keep people from smoking in public . If a lounge opens there should be ample supply of other cannabis products such as cannabis drinks, oils & edibles. This will be more sophisticated & classy.

  7. I was talking to a friend that was going to California for a week and enjoys smoking. Her concern is while she can purchase pot legally, being a visitor staying in a motel, where can she consume her legally purchased product. I believe even in a motel smoking room, pot would be frowned upon consuming even in a smoking room. There needs to be legal areas where visitors can
    consume cannabis comfortably without harrassment!!!! In my book also without having to pay a facility to be able to consume this now legal peoduct!

  8. When can we expect an upturn in the market? I have no extra money to add when they drop like this and of course it just drops further anyway. Thinking of just selling it all until it’s over!

  9. I have purchased cannabis in dispenseries in California, Colorado and Las Vegas, Nevada. Nevada really did it right when they legalized. The tax rates are reasonable…for cannabis, the regulations make sense. It was just an easy, pleasant, experience compared to the other states. But if you are planning on moving to Las Vegas remember this. From about early May to late September you will experience cloudless sunny days with brutal heat in the 90 to 115 degree range. In the middle of the day it seldom goes below 100 degrees. I love to visit but would not move there

  10. I am a first time investor. What would you suggest would be best for me.. I am thinking of investing around a thousand to start with. Give me your best shot..
    Billy

  11. Greg, first time response and a bit surprised about cannabis lounges write up. What’s happening in Colorado is people are disconnected from weed in the sense of social and business connectivity. Every celebration however small a birthday, a graduation, or even going out for a date deserves the same social liberation that alcohol has. We know the latter is very destructive and kills people indiscriminately and cannabis just doesn’t have that profile. We passed Cannabis lounges in Colorado and I fully expect that ones will be opening soon in Durango and as I see it there won’t be a seat left in the house. Keep up the good work Jaime

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