Embracing Cannabis Consumption Lounges

As legalized adult-use cannabis spreads across the nation, it has never been easier to purchase and enjoy this popular plant. However, the next challenge for many is finding a place to enjoy it outside the home. 

For public cannabis consumption, the name “consumption lounge” has taken hold, especially in legal terms, and states are establishing rules for these types of establishments. Not all legalized states allow cannabis consumption lounges within their borders, however. If you’re considering opening this type of establishment, know the current law before assuming legitimacy. As of this writing, the following 12 states and the District of Columbia have regulations regarding on-site use options:

• Alaska
• California
• Colorado
• Illinois
• Maryland
• Michigan
• Missouri
• Minnesota
• Nevada
• New Jersey
• New Mexico 
• New York

Here is a quick rundown of each state’s laws for consumption lounges.

Alaska

Concentrates, alcohol, and tobacco products may not be used on-site. No “happy hour” or similar promotions are allowed. Customers must be 21 or over and may not “bring their own” to be consumed.

California

While legally allowed, many jurisdictions have prohibited cannabis consumption lounge options in their area.

Colorado 

No alcohol or food may be sold, and no one under 21 years old may enter. The city of Denver enacted a bill in 2021 legalizing “mobile hospitality unit” licenses.

District of Columbia 

On-premises consumption of medical cannabis and similar products purchased on-site at the retailer is allowed within designated areas. Licensed retailers must submit a Medical Cannabis Endorsement Application to add this permission.

Illinois 

The Cannabis Regulation and Tax Act permits local governments to authorize BYOC (bring your own cannabis) consumption lounges.

Maryland 

The state allows consumers to bring their own cannabis and consume it at so-called cannabis cafes but restricts the sale of cannabis products at these locations.

Massachusetts  

The “social consumption” pilot program has been dropped. Therefore, cannabis consumption lounges are no longer allowed. This change aims for the state commission to instead focus on developing a broader licensing framework.

Michigan 

Cannabis products cannot be sold on-site but may be ordered from nearby dispensaries, and guests are allowed to bring their own products.

Missouri 

Cannabis products cannot be sold on-site but may be ordered from nearby dispensaries, and guests are allowed to bring their own products. Missouri medical marijuana law also permits property or business owners to authorize a specific “non-public space” where medical patients can legally consume cannabis. However, this space must be an “enclosed public space where one qualifying patient may consume medical marijuana.” 

Another option for consumption, which is a true rarity, is a state park. With the exception of some historical sites, Missouri has 38 state parks where medical card holders can consume cannabis in a tent, RV or other private space.

Minnesota 

An existing microbusiness license permits on-site consumption of edible cannabis products on a portion of its premises.

Nevada 

Here, consumption must occur out of sight of non-consuming persons. Single-use (at more than 3.5 grams) or ready-to-consume cannabis products containing more than 10 milligrams THC that were bought off-site are not allowed. Additionally, no alcohol, tobacco or nicotine products may be sold. 

Businesses with a cannabis lounge must provide water to every guest free of charge. Some safety-related regulations include the requirement of plans to limit cannabis-impaired driving and to minimize secondhand smoke exposure to workers. Further, guns are prohibited, surveillance is required and procedures must be set to reduce and respond to potentially violent or harassing behavior. Uniquely, Nevada law allows for standard cafe-type facilities as well as businesses that couple cannabis with yoga, massage therapy, infused food and other forms of incorporation.

New Jersey 

Open to those 21 years and older with ID, cannabis lounges here may not sell food on-site, but patrons are allowed to bring their own food or have food delivered. Neither alcohol nor tobacco can be sold. Medicinal patients must be allowed to bring cannabis items from other retailers into consumption areas for personal use.

New Mexico 

Consumption lounges are permitted, and “local jurisdictions may allow for the operation of cannabis consumption areas provided specified conditions are met by the cannabis consumption area(s) a local jurisdiction allows.”

New York 

The state has legalized cannabis lounges. Under State regulations, these lounges can only be opened in municipalities that have opted to allow them.

Stay in the Loop with CannaCon

Which state will potentially be the next to allow related businesses to house cannabis consumption lounges? It could be Maine. Legislative Document 1952 was introduced in May 2023, which would allow licensed “cannabis hospitality establishments,” where residents and tourists could consume cannabis in a social club-type setting. Sponsor Rep. David Boyer says this bill would especially benefit tourists, who may be prohibited from consuming cannabis in hotel rooms.

As a cannabis entrepreneur and/or enthusiast, the easiest way to stay in the loop about the latest cannabis legislation is to be part of a thriving community of like-minded cannabis connoisseurs. That’s exactly what CannaCon is. As the nation’s largest B2B cannabis expo, CannaCon is home to seminars, networking, products and business development opportunities across the nation throughout the year. Learn, network and grow at CannaCon events and through social media. Get your tickets to the next CannaCon today!

This article was originally published on May 4, 2021, and was updated on Feb. 13, 2024.