The separation of Nevada’s legal marijuana industry and casinos has potential state revenue going up in smoke, according to a new report from the University of Nevada, Las Vegas Cannabis Policy Institute.
Banning weed usage in the gaming sector has deprived the state of significant revenue from additional sales of cannabis. The situation also helps fuel the illegal cannabis market, according to the study.
“Today, the separations act as severe constraints on capital mobility, tourism synergy, and public-revenue growth, without any corresponding economic, public health or safety, or risk benefits to market participants in either market,” the UNLV study noted.
Barriers To Additional Revenue
Not allowing casino players to smoke weed while gambling cost the state about $540 million in revenue in 2024. The authors spelled out three main reasons for that:
- Cannabis delivery to casinos is prohibited, so none of Nevada’s 42 million tourists have access to legal marijuana, an impact of $210 million per year.
- About 75% of tourists (38 million) don’t have practical pedestrian access to legal cannabis retail stores or consumption lounges near where they stay, dine, or spend time, a $330 annual impact.
- Investment and shared financial interests between casinos and the cannabis industry is prohibited. Casinos not allowing cannabis consumption on-site is a major barrier to growing revenue for the state from the cannabis industry.
The state and Clark County, home to Las Vegas, currently bar marijuana delivery to properties with a gaming license. Additionally, in counties of more than 100,000 people, cannabis retailers must be located at least 1,500 feet from licensed gaming venues.
That makes it difficult to locate a weed shop in many of Las Vegas’ tourist areas. All this adds up to a major deterrent in the state collecting additional revenue from the cannabis industry.
“The result is that Nevada’s most densely commercialized and populated tourism hubs are ‘legal cannabis deserts,’ without any consumer access to legal cannabis within their borders,” the report said.
Reforms Urged
The institute urged several reforms, including lifting the delivery restrictions currently in place. The study pushed for removing the 1,500-foot barrier law and the prohibition of financial involvement between cannabis and gaming.
“Under this regulatory alternative, gaming establishments would have the option of allowing cannabis sales on-site, whether through a licensed retail store or through smaller kiosks located on (or near) the property that are operated under the umbrella of existing cannabis licensees,” the report notes.
Despite some of the barriers, Las Vegas casinos previously hosted weed conventions. But laws prohibited patrons from smoking on the premises.
There is a decent amount of crossover between poker and marijuana. Adam Bierman spoke with Card Player about how his love of the game helped him launch his company. The Canadian Stock Exchange listed his company, MedMen, in 2018.
Former tournament pro Andy Seth was also instrumental in launching another cannabis-related company called Dr. Dabber.
