Las Vegas Casino Execs Push for Cannabis Partnerships to Boost Tourism

Las Vegas tourism and gaming leaders are pressing Nevada officials to re-evaluate decades-old restrictions separating cannabis and casino businesses. They assert that updated regulations could revitalize the  troubled tourism market and enhance competitiveness.

The push came during a University of Las Vegas (NNLV)-hosted panel organized by the Cannabis Policy Institute and International Gaming Institute. It featured Fifth Street Gaming CEO Seth Schorr, cannabis industry veteran David Goldwater, and gaming law expert Terry Johnson.

"We need every tool in the toolbox," Schorr emphasized, noting declining visitor numbers. "Maybe 10 years ago, you had to be conservative, but today, it's got to be on the table."

Current Legal Constraints

As of 2024, Nevada's laws permit adults aged 21+ to hold up to 2.5 ounces of marijuana or 0.25 ounces of THC concentrate, but strict consumption rules remain. Public use in casinos, hotels, and federal properties like airports is banned except at licensed lounges. The only other alternative is consumption on private property.

A state law requiring a 1,500ft buffer between cannabis retailers and gaming venues further complicates consumption. Clark County regulation also bars cannabis deliveries to the Las Vegas Strip. A proposal to allow deliveries to non-gaming Strip properties was withdrawn earlier this year due to conflicts with federal banking regulations tied to marijuana's Schedule 1 substance status.

Push for Reforms

Industry leaders argue Nevada's cannabis restrictions now hinder legal market growth. "Current rules push visitors to unregulated sources," said David Goldwater, advocating for Strip-adjacent delivery and consumption lounges to redirect revenue from black markets.

Seth Schorr highlighted untapped tourism potential: "A subset craves integrated casino-resort experiences with amenities like consumption lounges." Both parties urged proactive planning for federal legalization changes, with Goldwater stressing that Nevada must be a forerunner for such adjustments.

Balancing Regulatory Risks

While supporting reforms, gaming law expert Terry Johnson defended Nevada's historic caution, citing federal legal risks. "There are worst-case scenarios of gaming licenses being prosecuted or assets seized," he noted, acknowledging critics but maintaining that the separation has preserved industry stability.

Goldwater observed that excluding major casinos inadvertently fostered small cannabis businesses but called Strip delivery bans "a consumer safety failure." He argued that tourists often turn to unregulated sources due to confusion over these restrictions. Schorr concluded that relaxed laws could significantly boost the state's competitiveness: "People vacation to indulge vices—drinking, gambling, and some want cannabis. Las Vegas must offer what they can't get at home."