New Jersey Clears Way For State’s First ‘Cannabis Lounges’ (See Locations)

New Jersey has cleared the way for the state’s first “cannabis lounges” to open in Atlantic City, Merchantville and Newark.

The New Jersey Cannabis Regulatory Commission (NJCRC) approved four consumption area endorsements during its meeting on Tuesday (watch the video below).

The endorsements allow licensed dispensaries to create designated spaces where adults 21 years and older can legally smoke marijuana or consume edibles.

Endorsements were approved for the following businesses:

• High Rollers Dispensary and SunnyTien Dispensary, both located in Atlantic City
• Gynsyng in Merchantville
• URB’N Dispensary in Newark

All of the above dispensaries are diversely owned businesses (minority-owned, woman-owned, or disabled veteran-owned) as certified by the New Jersey Department of Treasury.

>> Read More: Camden County's First Cannabis-Smoking Lounge Prepares To Open

To receive a consumption area endorsement, applicants first obtained municipal approval and met specific facility, safety and ventilation requirements as outlined in the NJCRC’s notice of application addendum.

The retailers will need to pass a final site inspection before their consumption areas can open for business.

More information on consumption area endorsement requirements, including application instructions and resources for municipalities, can be found online here.

“This is a major milestone in New Jersey’s cannabis industry. These designated spaces provide consumers with safe and legal options for cannabis consumption,” commission chair Dianna Houenou said.

“Whether individuals cannot consume cannabis inside their homes or simply wish to consume cannabis legally and responsibly, these areas provide a practical solution,” Houenou added. “We are proud to support this next phase of safe-use infrastructure in our state.”

• See Related: 5 Things You Need To Know About Marijuana Legalization In NJ
• See Related: $1 Billion In Marijuana: NJ Cannabis Industry Sees Record-Setting Year
• See Related: Weed Businesses Don’t Hurt Home Values – And May Even Help, Study Finds

The commission released its guidelines for consumption areas in January 2024. Some stipulations include:

• A cannabis consumption area must be attached to a dispensary, and operators will be limited to a single consumption area, regardless of the number of dispensaries they own.
• Consumption spaces must have HVAC systems robust enough to ensure proper ventilation and prevent smoke or vapors from affecting neighbors.
• Registered medicinal marijuana patients must be allowed to bring in cannabis items from other licensed retailers for their own use in the consumption areas.
• The sale of food, alcohol, tobacco, or nicotine products will be strictly prohibited, though patrons will be allowed to bring in or order food and non-alcoholic beverages.

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.