Nevada’s long-anticipated cannabis hospitality era finally got real in 2024 when Smoke & Mirrors, a lounge adjacent to Thrive Cannabis Marketplace just off the Las Vegas Strip, opened its doors on February 23. The venue became the first state-licensed consumption lounge regulated by the Nevada Cannabis Compliance Board (CCB), following the board’s final inspection and licensure issued on February 15. The debut marked a milestone three years after lawmakers authorized lounges under Assembly Bill 341.
Smoke & Mirrors leaned into a sophisticated, alcohol-free bar experience—think velvet seating, a DJ booth, and a menu of non-alcoholic, THC-infused “canna-cocktails”—designed to give tourists and locals a legal, regulated place to consume cannabis close to major resorts where use remains prohibited. Its first day featured a ceremonial 4:20 p.m. purchase by Clark County Commission Chair Tick Segerblom, a longtime cannabis advocate.
Momentum continued when Planet 13 opened its DAZED! Consumption Lounge in early April, establishing a second flagship venue tied to one of the city’s most visited dispensaries. The 3,000-square-foot space emphasizes curated product service, entertainment elements, and canna-cocktails, underscoring how Vegas lounges aim to merge compliance with high-touch hospitality.
Yet even as the first lounges launched, the path for many others proved more complicated than early headlines suggested. When AB341 passed, Nevada’s plan envisioned up to 40 licenses—split among dispensary-attached, independent, and social-equity awards—creating a pipeline for a statewide lounge ecosystem. In practice, turning conditional approvals into open doors required navigating rigorous local zoning, building and ventilation standards, on-site security protocols, and impairment-related transportation plans.
Several core friction points emerged. First, financing remained tight amid federally illegal status, with higher capital costs for specialized HVAC/odor mitigation, fire and safety retrofits, and hospitality-grade interiors. Second, Nevada’s rules prohibit alcohol service in cannabis venues, limiting mixed-party appeal and reducing per-guest spend relative to traditional nightlife models—pushing operators to differentiate through programming and experiential design. Third, local approvals and community relations added time and uncertainty, and regulators scrutinized impairment risks and safe-ride strategies to minimize DUI concerns.
Those headwinds translated into slower-than-expected rollouts. By mid-2024, state officials still projected nearly 20 lounges “close” to opening, yet actual grand openings lagged as operators worked through inspections and build-outs. In July and August, the CCB’s enforcement posture also became more visible, including disqualifications that underscored the consequences of compliance missteps.
The challenges grew starker in 2025: Smoke & Mirrors closed to the public after about a year, shifting to private events and highlighting the difficulty of sustaining traffic and margins without alcohol or broader food programs—especially when unlicensed cannabis-adjacent events elsewhere can siphon audiences. At that point, Planet 13’s DAZED! stood as the remaining high-profile lounge in Las Vegas, reinforcing how execution, location, and programming matter as much as licensure.
Still, the policy architecture remains intact, and the market case—giving millions of visitors a legal place to consume—hasn’t changed. AP reporting in February 2024 noted 19 other lounges with conditional approvals pending final inspections, suggesting substantial latent supply if operators can align capital, compliance, and hospitality operations. Industry watchers expect growth to come from venues that combine tight regulatory execution with ticketed events, culinary pop-ups, and partnerships that keep experiences fresh. In short: 2024 proved Nevada can open lounges; the next chapter will be about proving the model scales sustainably.