Nevada Gaming Commission to Strike an Agreement Between Gambling and Weed Industries
Legalization of recreational marijuana
Nevada legalized the sale of recreational marijuana on 1st July 2017, after which the industry has been churning huge amounts in sales. Legislators expected that about $100 million would flow in as state tax revenue in the first two years of the state’s legalization. But the industry made about $3 million as sales revenue within just four days of legalization. The breakup of this figure is even more incredible: $750,000 per day and approximately $125,000 in state taxes.
The effect on gambling companies
The legalization of recreational marijuana has certainly made life a lot easier for people. But gambling companies are likely to face a challenging time. The use and sale of recreational marijuana are still considered a violation of the federal law. Despite demands from tourists, the federal law prohibits consumption of weed outside private premises. Such places include restaurants, casinos, parks, bars, and on any property belonging to the federal government. This has pushed the state’s regulators to pose resistance because they wish to keep gaming companies away from anything that is federally illegal.
This has called the Nevada Gaming Commission to step in and address interactions between the casino and weed industries in the state. Nevada Governor Brian Sandoval formed a committee and ordered them to formulate policy recommendations to govern interactions between the two industries. Sandoval signed on Wednesday an executive order calling the Nevada Gaming Policy Committee, which comprises of casino representatives, gambling regulators, and other parties.
Chairman of the Gaming Control Board, A.G. Burnett, who is also a member of the committee, said that the gambling industry faces questions, including whether or not casino resorts can follow weed-related conventions. He also states that how the cash proceeds arising from pot transactions can reach the state’s casinos. The committee is expected to address interactions between the gambling and weed industries and decide whether or not casinos can have financial transactions with people who use and sell marijuana.
The Marijuana Business Conference and Expo is set to be held in November this year, and the event is expected to attract about 650 exhibitors or more. Sandoval opposed the legalization initially but said that he would consider people’s willingness and launched a sale program to speed up revenue collection from state marijuana taxes. But the committee is expected to make policy recommendations by June 2018 as per Sandoval’s executive order.