Massachusetts finally legalizes cannabis consumption lounges

The Massachusetts Cannabis Control Commission (CCC) on Thursday at last approved regulations for social consumption licenses.

Years in the making, the vote opens the door for cannabis cafes, tasting rooms and other marijuana-friendly hospitality and makes Massachusetts the 12th state to permit some form of on-site cannabis consumption.

The new rules are expected to be sent to the secretary of state by Dec. 19 and become official in early January, according to the Boston Globe.

However, it’s not yet clear when marijuana stores and other license holders could apply for consumption permits or when lounges could open for business.

And like with cannabis stores, municipalities have the ability to opt out.

Three marijuana social consumption lounges available in Massachusetts

The CCC’s unanimous vote followed lengthy discussions and delays, including Shannon O’Brien’s reinstatement as chair in September.

Once applications open, three licenses will be available:

• Add-on tasting rooms: Licensed cannabis retailers can apply to add consumption to their current facilities.
• Hospitality partnerships: non-cannabis businesses such as restaurants, theaters, yoga studios and hotels can partner with licensed marijuana establishments to host consumption events or spaces.
• Temporary: Short-term events where cannabis consumption is permitted.

However, there are limits.

Regulations explicitly ban the sale of alcohol, tobacco products and prepared cannabis-infused foods.

Cities can opt out of legal cannabis consumption lounges

Like the initial rollout of adult-use marijuana  stores, municipalities must opt in to allow social consumption.

Towns and cities must also legalize consumption via voter petition, new laws or updated zoning regulations before any licenses can be issued.

While some cities have already begun soliciting public feedback on potential zoning for consumption spaces, many others have not started the process.

Consequently, the CCC has not provided a definitive timeline for when the first lounge might open its doors.

Are marijuana social consumption lounges profitable?

Despite the milestone, industry observers are skeptical whether cannabis lounges can significantly affect the state’s $1.6 billion annual cannabis market.

Data from other mature markets with social consumption laws such as Nevada and California suggests consumption lounges are unlikely to be a major revenue driver.