Published by Galaxy Groves | March 25, 2025
Four years after New York State legalized cannabis and green-lit the idea of on-site consumption lounges, operators are still waiting for the go-ahead to open their doors—not for business, but for experience.
Under the 2021 Marijuana Regulation and Taxation Act (MRTA), licensed dispensaries were supposed to be able to open “consumption sites”—think cigar bar vibes, but for cannabis. A space to unwind, socialize, and indulge legally. But in 2025, not a single license has been issued for these lounges.
A Green Light Without the Go
The delay has left dispensary owners frustrated, especially those who have already invested in lounge-ready spaces. Take Arish Halani, CEO of Herbwell Cannabis, which just secured a premium five-story space at 519 Madison Avenue. He’s designed a rooftop lounge that could rival Manhattan's swankiest cocktail bars—but for now, it remains a dream deferred.
“There is no regulatory framework to enact the law,” Halani told The Post. “We’d love to be the first lounge to open.”
And he’s not alone. Dispensaries across the city, like The Cannabis Place in Queens, have already carved out VIP lounge areas, waiting for the regulatory stars to align. “It’s disappointing,” said Executive Director Osbert Orduna. “The lounges would add revenue to the business. It’s a missed opportunity.”
What’s the Hold-Up?
The Office of Cannabis Management (OCM) says it’s working on it—but with a long to-do list. According to OCM rep Taylor Randi Lee, the focus remains on establishing a “stable and sustainable supply chain” via cultivation, processing, and retail.
Translation? Consumption lounges are on the back burner.
To complicate things, there's internal resistance. Health officials reportedly worry that lounges could sidestep the Clean Indoor Air Act, which bans smoking in workplaces, bars, and restaurants—another wrinkle for an already overregulated industry.
Meanwhile, the Black Market Booms
While legal operators invest in sleek storefronts and pay Midtown-level rent, the illegal market is thriving. Despite Gov. Kathy Hochul's crackdown, many unlicensed shops still operate openly. Legal operators are feeling squeezed from both ends: the lack of lounge regulations and the continued presence of black-market competition.
So far, 333 licensed dispensaries have opened across the state, generating over $1 billion in sales. But until on-site consumption becomes a reality, a critical piece of the cannabis culture puzzle remains missing.
Galaxy Groves’ Take
At Galaxy Groves, we believe cannabis is more than a product—it’s a lifestyle and a community. Consumption lounges are essential to shaping that culture. They're places where education, connection, and safe use can flourish.
New York paved the way with forward-thinking legislation, but the journey isn’t over. It’s time for regulators to catch up with the law—and the people.
Let’s turn those lounge lights on.
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