Casino Exec Supports Federal Reclassification of Cannabis to Allow Gaming and Weed to Mix
Posted on: May 21, 2025, 10:38h.
Last updated on: May 21, 2025, 10:55h.
- Casinos and cannabis don’t jibe because of federal law
- Marijuana remains a Schedule 1 narcotic in the feds’ eyes
- A casino exec hopes that soon changes
A casino executive speaking at this week’s “Cannabis & Gaming” discussion hosted by UNLV’s Cannabis Policy Institute and International Gaming Institute opined that the legal gaming and weed industries could benefit from collaboration. But until there’s a federal change to cannabis’ classification as a Schedule 1 narcotic, that alignment will likely remain on hold.
Fifth Street Gaming CEO Seth Schorr’s company manages seven casinos in Las Vegas, including the Downtown Grand Hotel & Casino. Nevada is home to both legal medicinal and recreational marijuana, with medicinal being authorized in June 2001 and adult-use legalized through a November 2016 statewide referendum.
Speaking at the cannabis panel, Schorr opined that Nevada could regain its upper hand on other gaming states and claim to fame of being Sin City by allowing casinos to embrace adult-use marijuana.
It’s been a decade. Is it time we push the envelope? In Las Vegas, we’re competing against other jurisdictions. Online gaming wasn’t a thing a decade ago. Visitation is down in Las Vegas,” Schorr said.
“We need every tool in the toolbox as a city to drive visitation. Maybe 10 years ago, you had to be conservative. Today, it’s got to be on the table,” Schorr added.
Federal Concerns
Marijuana is legal for adults in Nevada to possess, though there are limitations on how much a person can have, and consumption remains limited to private residences and licensed cannabis lounges. Hotel rooms, regardless of whether they’re attached to a casino, are also supposed to be free of marijuana — though anyone who’s visited Las Vegas in recent years knows that isn’t the case.
Public consumption of marijuana is also prohibited. But, again, the law is rarely enforced.
Casinos, not only in Nevada but across the nation, however, do work vigilantly to keep their gaming floors free of weed. A key part of a casino’s license involves adhering to all federal laws.
With cannabis remaining a Schedule 1 narcotic — the same classification as heroin, LSD, and MDMA — casinos must stay away from the drug. Marijuana’s Schedule 1 classification poses challenges to banking laws, anti-money laundering protections, and employee provisions.
A large part of my career has been identifying niche opportunities and creating experiences for a subset of the population that wants or expects different things than the general population. I have to assume a large population would like a casino-resort with all of the amenities and consumption lounges,” Schorr said.
Schorr conceded that cannabis-friendly casinos would turn some away, but he thinks there’s a large enough demographic to warrant the risk.
Nevada’s cannabis consumption law mandates a 1,500-foot barrier between any licensed gaming venue and the business where pot consumers can partake.
Lounge Operations
Once billed as Nevada and Las Vegas’ next big tourism draw, the establishment of consumption lounges has been slow to take. Casino.org reported last month the abrupt closure of Smoke and Mirrors at Thrive Cannabis, the state’s first cannabis lounge that opened only in February 2024.
Local observers say Nevadans simply take their purchases home to consume, which eliminates worries about driving impaired. Visitors are seemingly willing to assume the low risk of prosecution in consuming their cannabis purchases in their hotel rooms or the public.
Walking off the Strip from a casino resort to a licensed lounge hasn’t been much of a draw.
Last Comments ( 2 )
So does this guy require drug testing to work in his casinos? I'm guessing yes
Funny, this “operator”, is -Rona ly smoking it and hanging out with growers and sellers, as he obviously is not watching his gaming product. I have watched him,over the years and the decisions he has made for his property and it seems those decisions just drive away the customer base. He wants to be hip, slick and cool, but he is not and the property and lenders pay for it. It’s just my opinion