The next frontier for the emerging legal cannabis industry in the United States involves permitting cannabis lounges. Sometimes referred to as cannabis clubs, lounges provide cannabis consumers and patients a private place to use cannabis products.
Such spaces have existed for many years in several states. However, they often operated in legal grey zones at best, and in outright defiance of state laws at worst. Thankfully, more governments are now permitting cannabis lounges to operate, with New Jersey being a recent example.
“The New Jersey Cannabis Regulatory Commission (NJ-CRC) approved four consumption area endorsements during its July 15 public meeting, marking a significant step forward in expanding access to safe, regulated spaces for cannabis use in New Jersey.” stated the New Jersey Cannabis Regulatory Commission in a recent press release.
“This is a major milestone in New Jersey’s cannabis industry. These designated spaces provide consumers with safe and legal options for cannabis consumption,” said Commission Chairwoman Dianna Houenou. ”Whether individuals cannot consume cannabis inside their homes or simply wish to consume cannabis legally and responsibly, these areas provide a practical solution. We are proud to support this next phase of safe-use infrastructure in our state.”
“The four consumption area endorsements approved are for High Rollers Dispensary and SunnyTien Dispensary, both located in Atlantic City, Gynsyng located in Merchantville, and URB’N Dispensary located in Newark. All are Diversely Owned Businesses (minority-owned, woman-owned, or disabled veteran-owned, as certified by the New Jersey Department of Treasury). ” the Commission stated.
“All applicants seeking cannabis consumption area endorsements must submit their applications through the designated application portal. While there is no cap on the total number of consumption areas statewide, regulated entities are restricted in the number of endorsements they can hold. The endorsement application fee is $1,000 for all businesses: $200 to submit the application and $800 once approved. The annual licensing fee is set at $1,000 for microbusinesses and $5,000 for standard businesses. The NJ-CRC will maintain an up-to-date list of all approved cannabis consumption areas on its website.” the Commission stated about fees in a separate press release.
New Jersey’s legal cannabis market surpassed $1 billion in combined medicinal and adult-use cannabis sales in 2024, which was nearly a 25% increase from the previous year’s total of $800,279,300.
According to an analysis by the Marijuana Policy Project, New Jersey’s legal recreational cannabis industry generated a total of $64,503,651 in tax revenue and fees in 2024, up from $45,083,223 in 2023. MPP estimated that the average price for an ounce of cannabis flower in New Jersey was $336 at the end of 2024.