Casino Executive Backs Federal Reclassification to Boost Casino Gaming and Cannabis Integration

• Casinos and cannabis don’t mix due to federal law
• Marijuana remains a Schedule 1 narcotic according to federal law
• A casino executive suggests a push for change

---

A casino executive recently attended a “Cannabis & Gaming” discussion hosted by UNLV’s Cannabis Policy Institute and International Gaming Institute, where he highlighted how the evolution of casino gaming could be fundamentally transformed by the legal cannabis industry. He suggested that the future of the casino gaming landscape could greatly benefit from deeper collaboration between these two sectors; however, until federal laws change regarding cannabis classification, such a synergy in the world of casino gaming may remain a distant dream.

Seth Schorr, the CEO of Fifth Street Gaming, which manages seven casinos in Las Vegas, including the Downtown Grand Hotel & Casino, spoke passionately at the panel. He highlighted that Nevada is at the forefront of both medicinal and recreational marijuana, with medicinal cannabis being legal since June 2001 and recreational use approved through a referendum in November 2016.

“If we are to reclaim our position among competing states for tourism, we might consider embracing adult-use cannabis within casinos,” Schorr suggested. “Online gaming has transformed the landscape over the last decade, and visitor numbers to Las Vegas are declining. We must explore all avenues, including allowing cannabis in casinos as a way to enhance the visitor experience. What was once considered a conservative approach may not be viable today,” he remarked.

Federal Concerns

In Nevada, while marijuana use is legal, there are strict limitations. Consumption is only permitted in private residences and licensed cannabis lounges. Ironically, although hotel rooms attached to casinos are expected to be marijuana-free, many visitors turn a blind eye to this regulation.

Additionally, public consumption is typically not enforced. To maintain their licenses, casinos nationwide vigorously uphold laws prohibiting recreational drug use on their gaming floors. As cannabis is classified as a Schedule 1 narcotic—akin to heroin, LSD, and MDMA—casinos are required to distance themselves from the drug, which introduces complications regarding banking, anti-money laundering provisions, and employee regulations.

“A large part of my career involves identifying niche opportunities and creating tailored experiences for those looking for something different. I believe a significant demographic exists that would prefer a cannabis-friendly casino-resort,” Schorr added.

While Schorr acknowledges that some patrons may be put off by cannabis-friendly casinos, he believes the potential customer base justifies the risks involved. However, Nevada law imposes a 1,500-foot barrier between any licensed gaming venue and venues where cannabis consumption can occur.

Lounge Operations

The development of cannabis consumption lounges in Las Vegas has been sluggish. Recent reports noted the abrupt closure of Smoke and Mirrors at Thrive Cannabis, which opened as the state’s first cannabis lounge in February 2024.

Local analysts indicate that many Nevadans prefer consuming their cannabis at home, thereby avoiding the risks of impaired driving. Tourists appear to enjoy consuming marijuana in the privacy of their hotel rooms, regardless of the laws prohibiting public use.

As it currently stands, the option for patrons to walk from a casino resort to a licensed lounge hasn’t proven to be an appealing experience.

In summary, advancements towards a potential collaboration between the cannabis and gaming sectors will depend on future federal legislative changes. As attitudes towards cannabis continue changing across the country, the possibility for casinos to include cannabis lounges could very well become a reality in the near future. The insights provided by industry leaders like Seth Schorr highlight the need for a progressive approach to keep Nevada’s gaming industry competitive and appealing to a modern audience.