On June 6th, Governor Steve Sisolak (D) singed into law Assembly Bill 341 allowing cannabis consumption lounges in the state.
January 2020 | Curaleaf acquires Acres Cannabis
June 2019 | GTI acquires Integral Associates
Sin City has navigated highly regulated human vice markets for most of its existence, providing the foundation for a robust adult-use market both broad and profitable. In fact, Nevada was experiencing attractive growth until COVID rocked the tourism industry on which the Silver State is so heavily dependent. Operators will continue to experience stunted demand until mid-2021 when a vaccine is widely distributed, and the gamblers and other degenerates return en masse.
Multiple public MSOs have operations in the Las Vegas market already, but investors should be wary of backing Nevada operators unless a Las Vegas foothold is integral to a broader multi-state strategy. With fewer than 70 retail stores open for roughly $60MM in monthly revenue (pre-COVID), the Las Vegas market is primed and ready for acquisition.
Tanking cannabis sales and more costly operations due to a delivery-only model during COVID may be forcing small operators to look for an exit. That said, well-capitalized MSOs are focused on much larger, limited license market opportunities, which may slow buying activity in this relatively small but culturally-relevant market.