Vegas casinos eye cannabis offering amid drop in tourism
Las Vegas is facing growing pressure to rethink its stance on cannabis as visitor numbers fall and tourism revenue takes a hit.
Nearly 300,000 fewer tourists visited the city this March compared to the same time last year, prompting concerns from business leaders and state lawmakers. Nevada is now dealing with a projected $191 million (€167.3 million) revenue shortfall for the upcoming two-year budget period, with expectations of declining room tax collections.
An opportunity awaiting nod?
Seth Schorr, Chief Executive of Fifth Street Gaming, is among those calling for action. He believes the integration of cannabis into Las Vegas’s resort and entertainment offerings could help revive the city’s appeal, as per a report by the Las Vegas Sun. “We can no longer afford to ignore this opportunity,” Schorr told a recent panel hosted by the University of Nevada, Las Vegas (UNLV).
“There are a million reasons that we need every tool in the toolbox as a city to drive visitation. So maybe 10 years ago, we could be conservative. Today, it’s got to be on the table,” Schorr emphasised.
Although recreational cannabis is legal in Nevada, strict regulatory barriers remain, particularly regarding its connection with the gaming sector. Federal law still classifies cannabis as an illegal substance, leading regulators to enforce a clear divide between cannabis and casinos.
Yet, the two industries appear to be warming to cooperation. The recent UNLV panel featured leaders from both sectors, with many agreeing it’s time to rethink long-standing policies. David Goldwater of Inyo Fine Cannabis Dispensary described gaming as a “good faith partner” in emerging discussions.
One major obstacle remains: tourists staying on the Las Vegas Strip currently cannot receive cannabis deliveries, limiting business for local dispensaries. A proposed solution to expand delivery access to the Resort Corridor met resistance from regulators, who feared it would allow wider access than intended.
Green shoots of legal reform
Legislation is now underway. Assembly Bill 203 would require gaming and cannabis regulators to jointly examine whether casino licensees should be allowed to invest in cannabis businesses. The bill also mandates a study of how future changes to federal cannabis policy could affect the state’s economy.
Some argue that current restrictions, like the 1,500-foot buffer between dispensaries and casinos, are outdated. Others say cannabis lounges—now permitted but isolated from casinos—would only thrive if integrated into resort settings.
Experts point to cultural shifts as daily cannabis use now outpaces daily alcohol consumption in the US. “This is the nightclub debate all over again,” said Schorr, referring to casinos’ initial reluctance before embracing nightclub venues. With federal policy changes on the horizon, many believe Nevada must prepare now or risk missing out on a growing market.
