New Jersey’s cannabis industry faces delays to consumption lounge

There’s been a lot of movement in the New Jersey cannabis world lately. The state’s decision to begin enforcing its hemp law sends a strong signal: they are serious about regulating these companies. But while the Cannabis Regulatory Commission is moving quickly when it comes to hemp sales, the same urgency is clearly missing when it comes to cannabis consumption lounges. For many advocates and business owners, this delay is not only frustrating, but also a major missed opportunity.

The hemp law, which officially went into effect in October 2024, aims to ban intoxicating products made from synthetic cannabinoids, such as delta-8 drinks and THC-A gummies. Enforcement was paused due to a federal court ruling, but the state has now made it clear that these products must be removed from shelves immediately and anyone caught selling them will face stiff penalties, which escalate for repeat violations. For now, stores are in a tough spot: Delta-8 drinks, THC-A gummies and similar products are off limits until the Cannabis Regulatory Commission issues updated rules.

As the state moves forward with enforcing hemp regulations, cannabis consumption lounges are still stuck in limbo. Lounge rules were approved nearly a year ago, but New Jersey residents are still waiting for applications and clear guidelines. For New Jersey’s cannabis industry, this isn’t just a bureaucratic delay – it’s a missed opportunity to reduce stigma, expand access, and build local economies and businesses.

The opt-in model for municipalities only complicates matters. Cities must individually approve lounges, and while a third of municipalities allow cannabis sales, fewer than a dozen have introduced consumption lounges. Much of this delay is due to misunderstanding – some officials imagine these spaces as rowdy bars, overlooking the fact that the lounges are strictly regulated and alcohol, tobacco and food are banned.

For cannabis users, this delay leaves few options. Those who live in rented apartments or government-subsidized apartments where cannabis use is prohibited are particularly affected. Lounges could provide them with a safe and legal place to consume. Additionally, these spaces could help normalize cannabis use and create opportunities for education and community connection in a controlled environment.

The lack of exercise on lounges is difficult to reconcile with the crucial effect on hemp. The impression is that New Jersey is poised to aggressively regulate hemp businesses, but has fallen short on its promises to fully realize the potential of its cannabis program through consumption lounges. If the state of New Jersey is serious about supporting its cannabis industry, it is time to move beyond enforcement and take the necessary steps to create a more inclusive and equitable space.