Casinos in Las Vegas Shun Involvement with Marijuana
Weed and Casinos: A Risky Gamble in Las Vegas?
The party central of the U.S., Las Vegas, is grappling with a dilemma: marijuana legalization and its potential impact on the city's massive casino industry. A cannabis-friendly hotel, The Lexi, opened its doors off the Vegas Strip in 2023, but it didn't fare well. Even though cannabis use in casinos and on the Strip is officially banned, lax enforcement has given a free pass to many establishments, causing confusion for potential investors like Alexandre Rizk.
Rizk, a real estate investor, thought The Lexi would be his ticket to cannabis-friendly fortune. Yet, the hotel struggled to stay afloat with occupancy rates stuck at a disappointing 30%. Cannabis-friendly marketing led tourists to flock to more traditional Vegas hotels for weddings, group events, and gamble away their nights. Rizk eventually rebranded The Lexi and saw bookings jump by 15% when he stopped promoting it as marijuana-friendly.
Las Vegas is searching for ways to incorporate cannabis into its casino revenue stream, though high-stakes players remain cautious. From January to April 2025, visitor numbers dropped by 6.5%, and overall profits fell by 40%[7]. As casinos in the area lost money, many executives are hesitant to jeopardize their gaming licenses and reputation by involvement with cannabis.
Plenty of cannabis industry events already call Vegas home, such as MJBizCon, Women in Cannabis Expo, and the Nevada Cannabis Awards Music Festival[6]. However, due to federal laws, the distance between cannabis dispensaries and casinos is regulated, and delivery is restricted on the Strip[6].
Some casino leaders push for cannabis integration to boost tourism and increase visitor growth. Seth Schorr, CEO of Fifth Street Gaming, encourages casinos to view cannabis as a part of the entertainment experience in Vegas[4]. Yet, others like Soo Kim, chairman of Bally's Corporation, advocate that mixing cannabis and casinos is unfeasible, given that casinos rely on federal banking systems[3].
The University of Nevada Las Vegas conducted a survey on the topic, revealing that 40% of people would visit a casino allowing cannabis use, while 29% would opt out. And around 70% supported having designated areas for cannabis use in their hotel or casino[5]. Acknowledging the gap between cannabis use and casino regulations, gaming lawyer Riana Durrett believes Nevada laws need an update to align with the growing number of daily cannabis users and reduce illegal sales near casinos[5].
Brendan Bussmann, a casino consultant, argues that casinos shouldn't risk allowing cannabis as long as it is technically illegal under federal law, regardless of state laws[5]. In this setup, it seems that cannabis integration remains a risky gamble for the casino industry in Las Vegas.
Published: 16th June 2025
Also Read:
Ahmedabad Airplane Crash: Rescue Operations UnderwayTop-Earning Players at 2025 FIFA Club World CupGlobal Markets 2025: Key Drivers of Growth and Volatility
[1] Federal laws and concerns about maintaining gaming licenses and reputation hinder the merger of cannabis and casinos in Las Vegas.
[2] Some casino executives advocate for relaxed laws to allow cannabis and casino partnerships, arguing it could boost tourism and visitor growth.
[3] A survey by the University of Nevada Las Vegas found that 70% of respondents support allowing cannabis use in casino resorts through designated areas.
[4] However, until federal laws change, significant integration is unlikely.
[5] Las Vegas is known for its rules, with the cannabis issue being compared to prostitution, which is banned in the county, though legal in some parts of Nevada.
[6] Las Vegas hosts numerous cannabis-related events, including MJBizCon, Women in Cannabis Expo, and the Nevada Cannabis Awards Music Festival.
[7] Despite the downturn in visitor numbers and profits, Nevadas recreational cannabis laws remain in effect.
- In order to possibly boost tourism and increase visitor growth, some casino leaders propose integrating cannabis into the entertainment offerings of Las Vegas, following the success of numerous cannabis-related events in the city.
- The dining scene in Las Vegas, already vibrant with diverse food options, may further expand to cater to the growing number of cannabis enthusiasts, recognizing the demand for food pairings that complement marijuana use within the casino-and-gambling industry.
