Study claims lack of cannabis at casinos is hurting Las Vegas' economy

• Las Vegas and Nevada’s tourism may be taking an economic hit in the millions due to the restricted sale of Cannabis
• This is the message of a new research study: The 1,500-Foot Wall by a researcher, who has pegged the tax cost to the state at $80m
• Robin Goldstein, Cannabis Economics Group Director at UC Davis, explained how existing regulation harmed the potential for further economic windfall

Las Vegas and Nevada are running out of puff, and the reason may be more literal than the outflow of Canadian and international tourists, or airlines in a pinch, as fuel prices soar.

The sale of cannabis in Nevada is legal, but the sale conditions are trying

According to "The 1,500-Foot Wall: Barriers between Cannabis and Gaming in Nevada and the Potential for Integration," a research study conducted by Robin Goldstein, Cannabis Economics Group Director at UC Davis in California, Las Vegas and Nevada’s tourism industries may be suffering because there is no actual cannabis to be had on gaming floors, CDC Gaming’s Buck Wargo originally reported.

Goldstein argues that the state may be losing as much as $80m in tax revenue, with retail on the hook for $540m and wholesale businesses losing another $210m, potentially due to the heavy restrictions on the substance in the Silver State.

Cannabis, though, is procurable in the state and Las Vegas, and legally at that, and therein lies the crux of Goldstein’s argument. Why make it possible for individuals to buy cannabis at private residences, but not expand this to Las Vegas’ booming tourism sector, for example?

Goldstein also takes a closer look at the reasons why tourism is suffering, citing the 1,500-foot barrier, which prevents dispensaries from being located within 1,500 feet of each other to prevent market saturation.

Another barrier is the state-specific regulation that demands the separation of ownership, business activities, relationships, and financial involvement between cannabis and gaming businesses.

Goldstein argued that people who come to visit Las Vegas and seek cannabis, which is legal in the state, would have to take an Uber ride to get to a "substantial distance" before they could actually legally purchase the substance.

Removing barriers is key to boosting Las Vegas, Nevada’s economies

The researcher also pointed to the fact that there was a thriving market for illegal cannabis right in the heart of the Strip that was operating unregulated, and further added to the economic impact of not updating the existing regulatory framework.

With an illegal market thriving, Goldstein added, there is also substantial harm to the public, as these sources are not always safe. For their part, gaming venues are not messing with cannabis at all, and they are making sure to follow state and federal regulations to a T lest they run into trouble.

Tourism has indeed taken a hit in LasVegas and Nevada, with Spirit Airlines ceasing operations after 34 years in business.

Image credit: Unsplash.com