Nevada advises Casinos not to invest in Marijuana

There’s reefer madness going on in Nevada right now, with one of the state’s casino owners considering an investment in marijuana. However, the Gaming Control Board has advised casinos that investing in pot wouldn’t be in their best interests.

One of the board’s , Terry Johnson, sent a reminder to casinos that stressed how, although Nevada has legalized medical dispensaries, the federal government still prohibits the manufacture and distribution of pot. The following is an excerpt from the letter:

Unless the federal law is changed, the board does not believe investment or any other involvement in a medical marijuana facility or establishment by a person who has received a gaming approval or has applied for a gaming approval is consistent with the effective regulation of gaming.

Johnson’s memo added that casinos investing in pot “would tend to reflect discredit upon gaming in the state of Nevada.” There was no mention of if the Gaming Control Board would seek disciplinary action and/or fines against casinos that do open a marijuana-related business.

The letter was sent after a list of companies that were interested in opening a pot-related business was released. The most notable business on this list from a gaming perspective is Clear River LLC. This company is owned by M Resorts CEO Anthony Marnell III, which likely triggered the Gaming Control Board’s memo.

In all, 109 companies have applied for a medical marijuana dispensary license. However, there are only a limited number of licenses available, meaning not all 109 applicants will be approved.

Last year, Nevada state officials cleared the way for medical marijuana to be distributed. And Clark County became the first jurisdiction in southern Nevada to offer this service. As the Las Vegas Review-Journal reports, State Sen. Tick Segerblom is hoping that the first dispensary will be up and running by the end of this year. “A lot of local jurisdictions said they wanted to wait until the state regulations were adopted,” said Segerblom. “Well, now they are adopted. We’ve waited 14 years. It’s time to get moving.”

The Democrat from Las Vegas actually sponsored the bill that legalized dispensaries in 2013. So far, Clark County is the only place in Nevada that’s moving forward with attempts to open dispensaries. And it’s obvious from Johnson’s memo that they don’t want casinos involved in the process.