After months of ‘radio silence,’ A.C.’s empty cannabis lounges inch closer to opening

The lights are off, the air is still, and the furniture is yet to be ordered at SunnyTien’s nearly finished marijuana consumption lounge. For months, Atlantic City dispensaries have been in a holding pattern, waiting for state regulators to allow them to open.

“We’re 90% of the way done,” said Spencer Belz, who along with owner Nhi Luu, manages SunnyTien dispensary. “But we’re not going to spend money on furniture that’s just going to collect dust.”

Nearly a year ago, the N.J. Cannabis Regulatory Commission approved regulations allowing cannabis lounges in dispensaries, prompting many owners to invest in the necessary space. Since then, owners say the commission has offered little guidance on when the application process would begin, leaving them in limbo.

“Unfortunately, it’s been like pure radio silence,” Belz said.

That silence broke last Thursday, when the Cannabis Regulatory Commission unveiled a timeline for applications, starting as early as January, depending on the type of business:

Cannabis regulation is often a slow process, taking years for significant progress. In Massachusetts, legislators and stakeholders have pushed for consumption lounges since legal sales began in 2018, with licensing only recently set to start in mid-2025. Similarly, it took Alaska five years to open its first lounge.

If New Jersey’s lounges open in 2025, the state will have rolled them out within three years of legalizing cannabis sales.

“We hope to see consumption areas begin operations in 2025, as these businesses represent a new and important component of New Jersey’s cannabis market,” said acting executive director Christopher Riggs.

For Belz and other stakeholders who have already poured time and money into near-complete lounges, the news feels bittersweet.

Jon Cohn, owner of High Rollers dispensary in the Claridge Hotel, said he’s invested nearly $1 million into a sprawling lounge, complete with leather booths, a “bud bar,” and upscale interior decor in a former casino room. That investment includes thousands of dollars in rental fees.

“Disappointment and frustration are the two words I would use to describe the situation. There’s at least a little bit of positivity in the fact that we now have a timeline,” Cohn said. ”But there’s still no commitment on how fast they’ll turn around the applications and we invested this much all predicated on the fact that we thought the applications were going to be out this past year.”

Cohn added that even if his application were to be approved on April 2, it’s unlikely the lounge would be ready for Atlantic City’s annual 4/20 cannabis celebration just two weeks later.

In a statement, the Cannabis Regulatory Commission said the timeline for lounge openings is unknown and depends on several factors like passing inspections, correcting any issues that might arise, and obtaining local approval — something Atlantic City dispensaries have already secured.

The process comes with fees: $200 to apply, $800 if approved, and an annual licensing fee of $1,000 to $5,000, depending on the size of the business.

According to the commission, lounges are crucial for ensuring cannabis is consumed legally in New Jersey, where usage is restricted to private residences or with explicit permission. Consumption is still prohibited in hotels, casinos, rentals without permission, beaches, and public spaces.

Weed lounges have been in the works in A.C. since at least 2022, the year legal weed sales began in New Jersey. That year, the Casino Reinvestment Development Authority (CRDA) approved SunnyTien to build a dispensary and lounge.

At least four Atlantic City dispensaries — ENDO, High Rollers, Legal Distribution, and SunnyTien — have been approved by the CRDA to open lounges. Lounge owners envision a future where tourists can stop in to smoke a joint or enjoy an edible before heading to the casinos or shows.

Currently, Atlantic City has more legal weed shops than casinos, with at least 12 dispensaries in operation and more cannabis businesses focused on retail, manufacturing, and cultivation on the way. However, not all business owners are optimistic about the city’s cannabis boom.

Some dispensary owners worry that Atlantic City’s cannabis market may already be oversaturated.

“We don’t want to invest any more money into Atlantic City until we see how this all plays out,” said Lou Freedman, owner of Legal Distribution, located just 300 feet from SunnyTien and two blocks from Bakin Bad dispensary. “If they continue to let all these people have weed places in A.C., there’s no way I’m building a consumption lounge.”

During a recent slate of approvals in November, CRDA board member Mike Beson voted no to further dispensaries in A.C.

“These people are putting their life savings in some cases into these applications,” Beson said, as reported by the Press of Atlantic City. “I just don’t think it’s fair, and I don’t think it’s good for the city.”

Freedman said his dispensary is fortunate because he and a partner own their building. But he’s concerned for others paying high rents on spaces they can’t yet operate. “Other places are paying $10,000 a month on rent and I don’t know how they’re making it.”

If delays persist, dispensary owners say they are hemorrhaging money on spaces they can’t operate, losing critical revenue in an already saturated market. Meanwhile, tens of millions of tourists visiting Atlantic City still lack legal places to consume cannabis — except for the few casinos and businesses that look the other way.