PANEL’S BLUNT MESSAGE: Allow Cannabis Delivery to Vegas Casinos
Posted on: May 6, 2026, 09:34h.
Last updated on: May 6, 2026, 09:34h.
- Experts at a UNLV panel last week argued that barring cannabis from casinos hurts Las Vegas tourism revenue
- Nevada reportedly loses $80 million in annual taxes as tourists were forced toward off-Strip dispensaries or illegal dealers
- Recent federal rescheduling of marijuana to Schedule III status has not yet triggered a change in Nevada’s rigid regulations
Nevada’s separation of cannabis and casinos is hurting tourism, starving the state of tax revenue, and pushing visitors toward the illegal market. This was the takeaway from the third annual Cannabis and Gaming Policy Discussion — jointly sponsored by the UNLV International Gaming Institute and the Cannabis Policy Institute — last Friday.
With Las Vegas visitation down nearly 8% in 2025 and new competitors — including prediction markets –siphoning off attention, Fifth Street Gaming CEO Seth Schorr argued that casinos need “every tool in the toolbox” to attract the next generation of tourists. Cannabis, he said, is one of those tools. Not a silver bullet, but a competitive advantage the industry is currently barred from using.
Schorr emphasized that rising gaming revenue masks a deeper problem: casinos are squeezing more out of their loyalty‑club players, while the casual “general tourist” is disappearing. Allowing cannabis lounges, cannabis‑friendly hotel experiences, or even simple delivery to resort properties could help reverse that trend. Some operators would opt out, he acknowledged, but many would innovate — and a few might even build cannabis‑first hospitality brands.
After Nevada legalized medical marijuana use in 2013, the Nevada Gaming Commission enacted the regulations that state-licensed casinos may not permit marijuana on their properties. In addition, any business that sells or permits its use must be located more than 1,500 feet from a licensed casino.
Those regulations have yet to be changed because marijuana is still considered a controlled substance — even though the federal government recently reclassified it from a Schedule I controlled substance (one for which there’s no benefit) to a Schedule III controlled substance (one for which research is permitted).
State Sen. Rochelle Nguyen (D-Las Vegas), the Nevada Legislature’s most vocal advocate for cannabis reform, called the regulations “ridiculous” because they effectively force tourists into the illegal market. That not only undermines public safety, she said, but also deprives the state of tens of millions in tax revenue.
Assemblyman Max Carter (D-Clark County) echoed the point, noting that his bill to allow cannabis delivery to non‑gaming Strip businesses died under pressure from casino interests worried about losing their licenses under federal banking scrutiny.
Canna-bust
A new research report presented by Robin Goldstein of UC Davis quantified the cost of the current regulations to Nevada’s legal cannabis industry — an estimated $750 million in annual retail and wholesale revenue, which means Nevada forfeits roughly $80 million in taxes.
Tourists who want cannabis must either trek off‑Strip or buy from unlicensed street dealers — a dynamic Goldstein warned is both unsafe and economically self‑defeating.
Former longtime MGM Resorts executive Feldman reminded the panel audience that casinos have resisted new trends before — nightclubs, online gaming, tribal casinos — only to embrace them once customer demand becomes undeniable. He said many operators already know exactly where a cannabis lounge would go on their property if regulators ever allowed it.
The consensus across the panel was clear: the status quo is unsustainable, and the path forward requires coordinated action among legislators, the Gaming Control Board, the Cannabis Compliance Board, and — eventually — the federal government.
Until then, Nevada’s most powerful industries remain stuck on opposite sides of a regulatory wall everyone agrees is outdated.
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