Title: Weed Woes: Closing Doors at Nevada's First Cannabis Consumption Lounge, Smoke and Mirrors
Legal cannabis lounge in Las Vegas experiences closure
Posted on: April 18, 2025, 01:22h.Last updated on: April 18, 2025, 01:42h.
Corey Levitan Read MoreCannabis IndustryBusinessLas Vegas Insights
In an unexpected turn of events, Nevada's pioneering cannabis consumption lounge, Smoke and Mirrors at Thrive Cannabis Marketplace, has shut its doors just a year after its grand opening.
A Thrive employee acknowledged the closure to Casino.org, without providing reasoning. Representatives from Thrive, including CEO Mitch Britten, failed to respond to our queries for further explanation.
But, as our buddy, Vital Vegas, likes to quip, any business misfortune in Las Vegas can be attributed to two things - a weak market or a shocking scandal. No controversies were reported at Smoke and Mirrors, leaving us to ponder the market angle.
Smoke and Mirrors debuted behind the Strip at 2976 S. Sammy Davis Jr. Drive in February 2024, providing a selection of cannabis products and allowing guests to enjoy flower, concentrates, pre-rolls, and infused food and beverage items.
Due to federal and state law requirements, the lounge had to open at least 1,500 feet from a licensed casino, and cannabis remains classified as a Schedule 1 narcotic by the US Drug Enforcement Agency, alongside substances like heroin and LSD.
Notably, not a single dispensary is allowed on the Strip or in downtown Las Vegas along Fremont Street, despite multiple retail stores suspected to peddle non-psychoactive hemp as the real deal in the tourist zones.
Lighting Up Legalities
Even though adults aged 21 and over can legally purchase cannabis at various dispensaries across Nevada, consumption regulations are a different story. Public consumption is illegal according to Nevada statute NRS 678D.500, and none of the Las Vegas hotels allow cannabis smoking in their rooms, apart from the Lexi (though this policy may soon change due to uncertain ownership issues[5]).
In an attempt to address the conundrum in 2021, Nevada lawmakers enacted Assembly Bill 341, establishing a legal foundation for cannabis consumption lounges. After Smoke and Mirrors, Planet 13 launched the city's second lounge in April. The lounge, Dazed, is located at 2548 W. Desert Inn Road, and remains operational according to publicist updates.
The Vegas Tasting Room within NuWu Cannabis Marketplace is the sole locale in Las Vegas that allows 21-year-olds to legally consume the cannabis they can purchase. This exemption arises due to its location on tribal land, thus avoiding regulatory oversight[6].
The High Hurdles for Consumption Lounges
Several factors may have led Smoke and Mirrors to falter, including stringent regulations, product constraints, and location challenges that crimped its growth potential. Despite a thriving market for legal cannabis sales, the regulatory environment has yet to provide a robust, sustainable framework that supports cannabis consumption lounges.
Thrive's managing partner, Mitch Britten, stated that the existing regulatory environment "doesn't support a sustainable business model for lounges," indicating that stringent compliance costs and limited product availability have hampered the industry[2][4].
The lounge's off-Strip location, far removed from the tourist corridors, could also have played a role in insufficient foot traffic. This reduction in potential customers, particularly the precious tourist demographic, affected the business's viability.
Furthermore, market competition with other cannabis consumption lounges and operations exempt from state regulations may have adversely affected Smoke and Mirrors' competitiveness.
In summary, the closure of Smoke and Mirrors primarily stems from a daunting regulatory landscape coupled with market challenges, including restricted product offerings and location-based disadvantages. The story illustrates the need for regulatory adjustments that strike a balance between public safety and industry prosperity in the evolving cannabis consumption lounge market.
[1] Gaming and Leisure Properties, Inc. to acquire Cannery Casino Resorts | Yahoo! Finance[2] "SOCRA429 Cannabis Market Lecture 10" [©] Plymouth State University[3] "Proposed Rules for Cannabis Consumption Lounges in Las Vegas" [©] XYZ Law Firm[4] "Thrive Cannabis Marketplace to open consumption lounge in Las Vegas" [©] NEVADA CANNABIS[5] "The Lexi Hotel in Las Vegas Allows Cannabis Consumption; Future Uncertain" [©] Vital Vegas[6] "Nevada cannabis consumption lounges: A federal conundrum" [©] CBS News Las Vegas
- The closure of Smoke and Mirrors, Nevada's first cannabis consumption lounge, has left many questioning the market's viability.
- Despite the legalization of cannabis for adults in Nevada, regulations governing consumption are stringent, making it difficult for businesses to thrive.
- The lounge's closure happened just a year after its grand opening, with the reason remaining unclear.
- Thrive, the company that owned Smoke and Mirrors, failed to provide explanations for the closure when contacted.
- No controversies or scandals were linked to Smoke and Mirrors, leaving the market as the main suspect for the lounge's difficulties.
- Smoke and Mirrors was located behind the Strip, away from tourist zones, which may have affected its foot traffic.
- Nevada lawmakers enacted Assembly Bill 341 in 2021 to establish a legal foundation for cannabis consumption lounges, yet Smoke and Mirrors still faced challenges.
- Planet 13's lounge, Dazed, is operational, and the Vegas Tasting Room within NuWu Cannabis Marketplace allows legal consumption due to its location on tribal land.
- The regulatory environment for cannabis consumption lounges is yet to provide a robust, sustainable framework, according to Thrive's managing partner, Mitch Britten.
- The closure of Smoke and Mirrors underscores the need for regulatory adjustments that balance public safety and industry prosperity in the cannabis consumption lounge market.
- The gambling trends in Las Vegas, including casino-games, casino-and-gambling, casino-personalities, and entertainment, continue to thrive, while the cannabis consumption lounge market encounters hurdles that circumvents regulations and consumer consumption norms set by state and federal laws.
