Lounges in New York Held Up by Cannabis Regulators
By law, New York weed retailers should be able to launch cannabis lounges, but so far there has been no substantial development in this regard. While some cannabis operators are leasing entire buildings downtown New York City, where they intend on setting up lounges, consumption areas have not been made a priority by state market regulators.
New York’s Marijuana Regulation and Taxation Act, enacted in 2021, includes provisions for “consumption sites,” or lounge areas where cannabis users can share a pre-roll with friends, get a weed-infused drink, or giggle while nibbling space cookies. But four years into legalization, New Yorkers still don’t have a single lounge venue where they can loosen up.
New York’s Office of Cannabis Hasn’t Finalized Rules on Lounges
Cannabis operators around New York have complained about the lack of regulatory framework that would enable cannabis lounges. There are businesses who’ve already leased buildings on 10- or 15-year contracts, where they want to set up a lounge business. One such business is Herbwell Cannabis, which holds a five-story building on Madison Avenue, Midtown Manhattan. “We’d love to be the first lounge to open,” the company’s CEO Arish Halani told New York Post.
Other operators who have spaces leased, hope that lounges could help increase profits. “It’s disappointing that four years later, we’re still waiting for regulations to come out. The lounges would add revenue to the business. It’s a missed opportunity,” Osbert Orduña, Executive Director of The Cannabis Place, told New York Post.
Lounges Were Not a Priority for New York Regulators
While it may be a big disappointment for those retailers who want to up the game with consumption sites around New York, lounges may not have been on the top of the list for New York authorities.
A spokesperson from the Office of Cannabis has said that the agency has prioritized “licenses that are critical to establishing a stable and sustainable” cannabis market, which does not include licensing for lounges.
“Currently the Office is assessing the regulatory approaches for consumption licenses in New York,” said the spokesperson. The agency is reportedly monitoring best practices and outcomes seen in other jurisdictions that have permitted lounges, as well as evaluating the effects that lounges have on public health and safety.
Further according to sources, New York’s health officials might be entirely against introduction of cannabis lounges because it would be at odds with the Clean Indoor Air Act, which prohibits smoking in closed facilities.
New York regulators faced a few other hurdles that came around with legalization. The state’s legal market struggled with the excessive number of illicit street vendors and smoke shops, most of which were repelled in a big action during 2024. Most significant was Operation Padlock, which resulted in numerous civil penalties for offenders and seizure of more than $20 million in illegal pot products.
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Stephen Andrews
