Seth Schorr, CEO of Fifth Street Gaming, says it’s time for Las Vegas to embrace marijuana lounges and allow hotel deliveries to boost tourism and stay competitive with other destinations.
Schorr made his case during a cannabis and gaming policy panel this week at the University of Nevada, Las Vegas, hosted by the Cannabis Policy Institute and International Gaming Institute.
“We need every tool in the toolbox,” Schorr said. “Visitation is down. Maybe 10 years ago, you had to be conservative, but today it’s got to be on the table.”
Joining Schorr were cannabis operator David Goldwater and Terry Johnson, a former member of the Nevada Gaming Control Board and current UNLV law professor. The discussion focused on the longstanding separation between the state’s gaming and cannabis industries, largely due to marijuana’s federal Schedule I status and concerns about federal oversight.
Nevada law currently requires at least 1,500 feet of separation between cannabis businesses and casinos. In addition, Clark County prohibits legal cannabis operators from delivering to the Strip. A legislative proposal to allow cannabis delivery to non-gaming Strip properties was shelved earlier this year, largely due to concerns from the casino industry about potential conflicts with federal banking laws.
Schorr argued that visitors already expect to enjoy marijuana while in Las Vegas and that the market demand justifies a shift in policy. “You don’t know until you try it,” he said. “I have to assume a large population would like a casino-resort with all of the amenities and consumption lounges. Not every property would go all in, but I think it’s large enough that it would work.”
Goldwater said the current rules are hurting legal businesses and pushing tourists to the unregulated market. “Being able to deliver and serve the tourism corridor would significantly assist legal sales and compete with the black market,” he said. He added that cannabis lounges could increase both legal sales and tax revenue.
Both Schorr and Goldwater said the state should prepare for a potential federal change to marijuana’s classification. “The more we can plan for it, the faster we can act,” said Goldwater. “Nevada should be ready to lead.”
