The latest state to adopt cannabis consumption lounges — and where they’re legal as of July 2025

Cannabis lounges—legal spaces to consume on site—are moving from novelty to normalized hospitality. In July 2025, New Jersey became the latest state to formally adopt and start approving cannabis consumption lounges, joining a growing roster of states that permit on-site use in some form. Below is a concise rundown of what changed in New Jersey, how lounges work there, and an updated, state-by-state snapshot of where on-site consumption is allowed as of July 2025.

New Jersey: the newest adopter (July 2025)

New Jersey had long contemplated consumption “areas” as an endorsement added to a dispensary license, but approvals only materialized in July 2025. On July 15, 2025, the New Jersey Cannabis Regulatory Commission (NJ-CRC) approved the state’s first four consumption-area endorsements—effectively green-lighting the inaugural lounges once local and build-out requirements are met. These are the first official go-aheads for on-site consumption in the Garden State. READ MORE: NJ.gov, NewJerseyMMJDispensary

Two weeks earlier, NJ broadened eligibility: as of July 2, 2025, any Class-5 retailer (or medical dispensary) may apply for a consumption-area endorsement, provided local approval is secured. Fees, eligibility, and process details were published by the CRC and summarized by industry counsel. READ MORE: Filter

What’s allowed in NJ lounges?

  • On-site cannabis consumption in a designated area attached to a retailer (or permitted medical dispensary).
  • Food/alcohol: Lounges cannot sell alcohol and generally can’t sell prepared food; bringing outside food or delivery can be allowed by local rules.

When do they become legal?

  • On-site consumption becomes legal upon issuance of the CRC consumption-area endorsement and compliance with local approvals, building/fire/ventilation standards, and the site’s certificate of occupancy. The first four endorsements were approved July 15, 2025.

Why lounges, and why now?

States are increasingly pairing retail with regulated places to consume because tourists and renters often cannot consume at home or in hotels. The Marijuana Policy Project notes a majority of adult-use states now allow on-site consumption somewhere, typically with local opt-in and strict ventilation/employee-safety rules. READ MORE: MPP

Where consumption lounges are permitted (as of July 2025)

Regimes vary widely—some allow retail-attached rooms, others permit independent hospitality venues, and several authorize temporary events. Always check local ordinances, which can further restrict or expand what’s possible.

  • Alaska – One of the first to permit on-site endorsements at retailers. Smoking can be allowed (with conditions); food permitted; no alcohol.
  • California – Localities can authorize on-site use; the state also issues temporary event licenses. A major 2024 law (AB 1775) lets lounges sell non-psychoactive food and drinks and host live performances starting Jan 1, 2025, giving CA lounges a café-style model. Alcohol remains prohibited.
  • Colorado – Two hospitality models: bring-your-own (can be mobile) and sales-permitted venues; special event licensing available. Local opt-in required.
  • District of Columbia – Regulations allow on-site consumption under specific programs; details continue to evolve with local rule-making.
  • Illinois – Localities may allow on-site consumption areas at dispensaries or at licensed retail tobacco stores; typically prepackaged food only; no alcohol.
  • Maryland – Localities may opt in; up to 50 on-site licenses statewide; smoking is outdoors only (indoor vaporization may be allowed). Alcohol prohibited.
  • Massachusetts – The Cannabis Control Commission advanced social consumption regulations (late 2024). As of mid-2025, the program is authorized and moving through implementation, with municipalities able to opt in. READ MORE: Cannabis Industry Insights
  • Michigan – Allows designated consumption establishments (bring-your-own or affiliated with a retailer/microbusiness) and temporary event licenses. Food prep allowed if separately licensed; no alcohol.
  • Minnesota – Adult-use framework includes on-site endorsements for certain micro businesses and lower-potency retailers (no smoking/vaping inside on-site areas; infused food/drinks allowed). Separate event licensing can allow smoking at events.
  • Missouri – Law enacted in Nov 2022 allows localities to authorize on-site consumption; rule making has been evolving.
  • Nevada – Two models: retail-attached lounges and independent lounges. Extensive ventilation requirements; food allowed under health codes; no alcohol. The first state-inspected license in Las Vegas went to Smoke and Mirrors (Thrive) in early 2024, though the venue later pivoted after one year; more lounges are conditionally approved and rolling out. READ MORE: AP News
  • New Jersey – Newest adopter. CRC approved the first four consumption-area endorsements July 15, 2025; applications open to all Class 5 retailers (and medical dispensaries) as of July 2, 2025, pending municipal approval. No alcohol; limited food options (bring-in/delivery).
  • New Mexico – On-site endorsements for retailers; indoor smoking allowed; alcohol prohibited.
  • New York – On-site consumption license exists in statute; smoking allowed indoors; the state continues to finalize and phase in rules and licensing.

Note: Different industry trackers sometimes count 12–14+ jurisdictions as “allowing lounges” depending on how they treat pilots, event-only models, or places like D.C. Always confirm local rules before planning a venue.

How New Jersey’s model compares

  • Structure: NJ uses an endorsement attached to a retailer license (or medical permit), not a stand-alone hospitality license—more like Illinois and parts of Michigan.
  • Safety & operations: Expect NJ to mirror other states on ventilation, employee protections, and separation from non-consumption areas. The endorsement requires municipal sign-off and adherence to public-health restrictions (no alcohol; limits on food).
  • Market impact: Lounges give renters and tourists legal places to consume. MPP emphasizes on-site access as an equity feature, given many leases ban smoking/vaping at home.

California’s café turn (Jan 2025)

While not the newest adopter, California made one of the biggest model shifts: AB 1775 (signed Oct 2024) lets cannabis lounges offer non-psychoactive food and drink and live performances beginning January 1, 2025. The move answers a long-standing pain point where lounges were barred from kitchen service, and may provide a blueprint for states looking to pair cannabis with a fuller hospitality experience (still no alcohol). READ MORE: Eater LA

Nevada’s reality check

Nevada’s 2021 law sparked visions of Vegas-style cannabis hospitality. The first state-licensed lounge, Smoke and Mirrors, received its license after inspection and opened in early 2024. Financial headwinds and regulatory costs, however, led the operator to scale back after one year. Still, more than 20 additional lounges have conditional approval, and the state continues to refine expectations around ventilation, impairment prevention, and event programming. READ MORE: AP News

Practical takeaways (multi-state)

  1. Local control rules the day. Even in “green-lit” states, cities/counties must opt in. Ventilation specs, staffing, and hours vary by municipality. Use state guidance (like MPP’s summary table) as a starting point, then check your city ordinance. (
  2. No alcohol—nearly everywhere. Most states ban alcohol in lounge premises, shaping menus toward non-alcoholic pairings and curated food programming (where permitted).
  3. Café trend is real. California’s 2025 update shows regulators warming to food/entertainment in lounges so long as employee-safety and ventilation standards are met.
  4. Operational runway matters. Nevada’s experience underscores the need for realistic traffic modeling, compliance budgets, and non-cannabis revenue (tickets, programming) to ensure sustainability. READ MORE: SFGATE

Bottom line

As of July 2025, New Jersey is the newest state actively approving cannabis consumption lounges, reflecting a broader shift from retail-only to hospitality-enabled markets. For operators and travelers, the map is finally filling in—just remember that the decisive rules are often hyper-local, and the most successful lounges will marry rigorous compliance with compelling, alcohol-free hospitality.