Atlantic City Prepares for Rollout of Regulated Cannabis Lounges
Atlantic City is preparing to welcome its first cannabis consumption lounges, marking one of the most significant tourism developments the Jersey Shore has seen in years. Long known for casinos, boardwalk attractions, and nightlife, the city is now positioning itself as a regional leader in legal cannabis experiences as state regulators move consumption-friendly venues toward final approval.
The New Jersey Cannabis Regulatory Commission (CRC) has already issued guidance for lounges attached to licensed dispensaries, outlining air-quality standards, security rules, and limits on food and onsite sales. Over the past year, Atlantic City officials have streamlined zoning and local approvals to ensure the resort town can move quickly once operators meet state requirements. That effort is beginning to pay off: several dispensaries, including Higher Level, The Botanist, and MPX NJ, have signaled intent to open lounges within city limits.
Local leaders see the move as an opportunity to strengthen Atlantic City’s identity as a year-round destination. For decades, the city has sought ways to diversify beyond gaming revenue. Cannabis lounges, boosters say, could offer the same type of experiential draw that helped reshape Las Vegas and Denver’s tourism markets. While New Jersey law prohibits alcohol sales in these spaces, operators expect a mix of tastings, educational sessions, and wellness-focused programming designed to appeal to both new consumers and seasoned visitors.
Mayor Marty Small Sr. has consistently emphasized Atlantic City’s potential to become the East Coast’s most cannabis-forward destination, telling business groups that the city’s tourism economy aligns naturally with experiential cannabis retail. Several casino executives have noted that while gaming floors remain strictly smoke-free, lounges could encourage increased foot traffic throughout the city and help casinos attract younger, experience-driven travelers.
Industry analysts say Atlantic City’s timing is strategic. As New Jersey’s adult-use market continues to expand, consumer demand for legal spaces to consume has grown. Without lounges, tourists who purchase cannabis often find themselves without permitted locations to use it due to hotel restrictions and public-consumption prohibitions. Lounges are expected to close that gap and give visitors clearer, safer options.
Dispensary operators have already begun preparing for what they expect to be a steady wave of out-of-state traffic. Atlantic City’s proximity to Philadelphia, New York, and Delaware puts it within a short drive of more than 20 million residents. Lounges could evolve into the next stage of experiential cannabis retail, offering curated environments similar to tasting rooms or high-end social clubs. Some proposed concepts include live music, classes on terpene profiles, guided consumption sessions, and partnerships with local restaurants for non-infused food service.
Public health officials, meanwhile, continue to stress education and responsible use. The CRC requires lounges to have trained staff on-site, limit overserving, maintain ventilation standards, and provide clear transportation messaging, including rideshare access. Operators must also ensure that no one under 21 is permitted inside, even with a medical card.
For residents, reactions have been mixed but largely positive. Many see lounges as a natural progression of legalization and a way to generate economic activity without major disruptions to neighborhoods. Others have expressed concerns about odor and traffic, but city officials say updated ventilation systems and strict licensing rules will mitigate most issues.
With several lounges expected to open in 2025, Atlantic City is poised to become one of the first East Coast destinations where visitors can legally purchase and consume cannabis in a regulated environment. For a city constantly searching for new ways to evolve, the arrival of lounges could signal the start of a fresh chapter—one that blends tourism, culture, and cannabis in a uniquely Atlantic City fashion.