Atlantic City, New Jersey, long celebrated for its vibrant casinos and bustling boardwalk, is on the cusp of introducing a new attraction: cannabis consumption lounges. These establishments are poised to offer both residents and tourists a legal and safe environment to enjoy cannabis products, potentially redefining the city’s tourism landscape.

Regulatory Progress and Approvals

The journey toward establishing cannabis lounges in Atlantic City has been marked by regulatory developments and strategic planning. In December 2024, the New Jersey Cannabis Regulatory Commission (CRC) announced a phased application timeline for these lounges:

• January 2, 2025: Applications opened for Social Equity Businesses.
• April 2, 2025: Diversely Owned Businesses could begin applying.
• July 2, 2025: All other applicants became eligible to apply.

This structured approach aims to ensure that businesses from various backgrounds have equitable opportunities to participate in the burgeoning cannabis industry.

Pioneering Establishments in Atlantic City

Several businesses in Atlantic City have been proactive in integrating cannabis consumption spaces into their operations:

• High Rollers Dispensary at The Claridge Hotel: Approved in early 2023, this 10,000-square-foot facility is set to feature a consumption lounge, making it one of the city’s first such establishments.
• SunnyTien Dispensary: Located at 3004 Atlantic Avenue, SunnyTien received approval from the Casino Reinvestment Development Authority (CRDA) in 2022 to operate both a dispensary and a consumption lounge. The owners, local entrepreneurs Zhi Tan and Nhi Luu, have been awaiting further regulatory guidance to commence operations.
• ENDO, Legal Distribution, and Others: These dispensaries have also secured CRDA approvals to incorporate consumption lounges, reflecting a broader trend within the city to embrace cannabis tourism.

Challenges and Anticipated Openings

Despite securing necessary approvals, many of these establishments have faced delays in opening their lounges. Business owners have expressed concerns over the prolonged application process and the lack of clear timelines from state regulators. For instance, Jon Cohn, owner of High Rollers Dispensary, has invested nearly $1 million into the lounge but remains uncertain about the official launch date due to regulatory ambiguities.

The CRC has indicated that the timeline for lounge openings depends on various factors, including passing inspections, addressing any issues that arise, and obtaining local approvals. While the application process has commenced, the exact dates when lounges will welcome patrons remain uncertain.

Atlantic City’s Vision for Cannabis Tourism

City officials and business owners are optimistic about the potential economic benefits of cannabis consumption lounges. By providing designated spaces for cannabis use, Atlantic City aims to attract a new segment of tourists, thereby boosting local businesses and diversifying its entertainment offerings. The integration of these lounges is seen as a strategic move to revitalize the city’s tourism industry, especially in the wake of challenges faced by traditional gambling establishments.

What Lies Ahead

As Atlantic City ventures into the realm of cannabis consumption lounges, it stands at the forefront of a significant shift in tourism and entertainment. While regulatory hurdles have delayed the immediate launch of these establishments, the city’s commitment to embracing cannabis culture signals a promising future. Once operational, these lounges are expected to enhance Atlantic City’s appeal, offering visitors a unique blend of traditional attractions and modern experiences.