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Licensed Dispensary

Three silhouetted figures saluting in front of an American flag, with the text Veteran Owned and Operated below.

NYC Cannabis Lounges Delayed by Regulators

Four years after New York legalized adult-use cannabis, licensed operators are still waiting for the state to finalize the regulations needed to open consumption lounges. The New York Office of Cannabis Management (OCM) has yet to create a regulatory framework that would allow businesses to even apply for on-site consumption licenses, despite the Marijuana Regulation and Taxation Act being signed into law in March 2021. Operators like Arish Halani of Herbwell Cannabis have already committed to long-term commercial leases in anticipation of lounge approvals, including a five-story space on Madison Avenue in Midtown, with no clear timeline in sight. The OCM has said it is prioritizing licenses critical to establishing a stable supply chain and evaluating best practices from other states, but has offered no date for when consumption rules will be finalized. Behind the scenes, sources point to resistance from state health officials who are concerned that lounges would conflict with New York’s Clean Indoor Air Act, which prohibits smoking and vaping in workplaces, bars, and restaurants.

The delay is a direct hit to licensed operators who built their business plans around the full vision of what legalization promised. New York has now crossed $1 billion in total legal cannabis sales and has 333 licensed dispensaries operating across the state, but zero consumption lounges. For operators who invested in larger footprints specifically to accommodate lounge space, every month without a regulatory update means deferred revenue and mounting overhead. At The Cannabis Place, we believe a complete, well-regulated cannabis industry serves everyone better: operators, consumers, and the communities we are all a part of. New York built something real with legalization. It is time for the regulatory framework to catch up to the opportunity.

Sources The Cannabis Place is mentioned in:

  1. https://www.aol.com/news/ny-cannabis-merchants-fume-t-225702740.html
  2. https://nypost.com/2025/03/23/us-news/ny-cannabis-merchants-fume-they-cant-open-pot-lounges-because-of-foot-dragging-by-regulators/
  3. https://www.yahoo.com/news/ny-cannabis-merchants-fume-t-225702585.html
  4. https://softsecrets.com/en-US/article/lounges-new-york-held-cannabis-regulators
  5. https://dabbin-dad.com/in-the-news/ny-cannabis-merchants-fume-they-cant-open-pot-lounges-because-of-foot-dragging-by-regulators/

Osbert Orduña

Osbert Orduña is a Marine Corps Service Disabled Veteran and the CEO and founder of The Cannabis Place, where he leads one of the country’s first social equity and unionized cannabis dispensary initiatives. He draws on his lived experience growing up in NYC Public Housing and his career in public service to guide an approach centered on opportunity, fairness, and community benefit. Before entering the cannabis industry, he built a successful government contracting firm and developed strong expertise in emergency management, security operations, and compliance. Osbert now contributes to national conversations on cannabis equity and workforce development through advisory roles with organizations such as the Cornell/WDI Cannabis Workforce Initiative, the National Hispanic Cannabis Council, and the Service Disabled Veterans in Cannabis Association. His writing focuses on practical insights, community empowerment, and building a more ethical and inclusive future for legal cannabis.
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