NY cannabis merchants fume they can’t open pot lounges because of foot-dragging by regulators

Challenges Faced by Cannabis Store Operators in New York

Operators of licensed cannabis stores in New York are facing obstacles in opening pot lounges for on-site consumption due to delays in drafting the necessary regulations.

The Marijuana Regulation and Taxation Act of 2021 allowed the licensing of “consumption sites” but four years later, operators are still unable to apply for licenses as the Office of Cannabis has not established the required regulations.

Arish Halani, CEO of Herbwell Cannabis, expressed frustration over the delay and shared plans for a potential pot lounge in their flagship store in Midtown Manhattan.

Despite the challenges, Herbwell Cannabis is committed to opening their store in Midtown Manhattan and another location in The Bronx.

Existing licensed cannabis dispensaries like The Cannabis Place in Queens are also waiting for regulations to convert their spaces into lounges for customers.

The Office of Cannabis Management (OCM) stated that they are working on developing regulations for consumption sites and will notify the public when they are available for comment.

State health officials are reportedly hesitant about cannabis lounges due to concerns about violating the Clean Indoor Air Act, which prohibits smoking and vaping in most workplaces.

Despite challenges, the cannabis industry in New York is growing with over 333 licensed dispensaries generating significant revenue.

Legal operators continue to face competition from the black market, even as efforts are made to regulate the industry more effectively.