Nevada Casinos Want Cannabis, But Laws Say No

Las Vegas casino executives and state lawmakers are calling for a regulatory overhaul that would allow marijuana and gaming to coexist on casino properties. The debate resurfaced Friday at the third annual Cannabis and Gaming Policy Discussion, jointly hosted by the UNLV International Gaming Institute and the Cannabis Policy Institute. Experts argued that outdated regulations are costing the state significant tourism revenue. Nevada currently prohibits licensed casinos from permitting marijuana on their premises. Cannabis lounges must also stay at least 1,500 feet from any licensed casino.

Nevada Loses Millions Blocking Cannabis From Casinos

A study by University of California, Davis Professor Robin Goldstein found that visitors struggle to obtain marijuana legally while staying on the Las Vegas Strip. Deliveries to casino properties are banned under current regulations. According to Goldstein, this gap is costing Nevada's retail cannabis businesses roughly $750 million annually.

The state is also missing out on an estimated $80 million in yearly tax revenue. Seth Schorr, CEO of Fifth Street Gaming, pointed to declining visitation as another reason for urgency. He noted that non-loyalty casino visits had dropped sharply. "Our carded play, people who are part of our players club, is up, but our non-carded play is significantly down," Schorr said. "I think cannabis would have an impact."

Casino Executives Are Already Planning Cannabis Lounges

Schorr has championed the idea of a "marriage" between the cannabis and gaming industries for at least two years. He argued that Nevada's hospitality sector would respond in varied ways if the laws changed. "There's probably a casino that would say no even if it's legal," he said. "Many others would allow it in a highly regulated way, and some might completely change their brand to a cannabis-first hotel."

Alan Feldman, director of strategic initiatives at UNLV's International Gaming Institute, said casino executives are already informally discussing where cannabis lounges would go. "I've been around enough casino executives over the decades, walked with them on their properties, and heard them say if they allow us to have cannabis, this is where the lounge will go," Feldman said.

Federal Law Remains the Biggest Roadblock to Reform

Despite growing support locally, federal law continues to block progress.

Casinos are regulated as financial institutions and risk losing gaming licenses if they facilitate a federal offense.

Marijuana remains a controlled substance even after its recent reclassification to Schedule III. State Sen. Rochelle Nguyen called the current framework "ridiculous," noting that consumers are already using cannabis along the Strip. "The big elephant in the room is we still need to see some change on the federal level," Nguyen said. Nevada's legislature does not convene again until 2027, meaning near-term changes remain unlikely.