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Obstacles to open: Nevada cannabis consumption lounges face hurdles despite legalization

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Obstacles to open: Nevada cannabis consumption lounges face hurdles despite legalization


LAS VEGAS (FOX5) — Years after cannabis consumption lounges were legalized in Nevada, only one operates regularly for public use statewide.

The Nevada Cannabis Compliance Board tells FOX5, they have issued 28 conditional licenses to prospective operators.

Barriers to opening

Christopher LaPorte, a consultant working with a client seeking to open a cannabis business in Las Vegas’ Arts District, said three major hurdles prevent businesses from opening.

“The first one is perception. Like, what people think these lounges are supposed to be,” LaPorte said.

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He said lounges will offer more than smoking spaces and will be designed as destinations.

“It’s going to be a restaurant. It’s going to be a movie theater. There’s going to be anything where you’re just replacing alcohol with cannabis,” LaPorte explained.

The second challenge involves finding real estate. State regulations require lounges to operate at least 1,500 feet from casinos, limiting location options.

“Not every property owner wants to lease to cannabis lounge license holders. And so now you have to ask yourself, if you’re a first-time business owner, and you want to open up your first restaurant, do you have to buy the building too?” LaPorte said.

Funding represents the third obstacle for prospective owners entering the new industry.

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State support efforts

Steve Gilbert, chief of administration for the Cannabis Compliance Board, said the agency held a resources fair this week for conditional license holders.

“We know it is difficult. It’s a new industry,” Gilbert said.

Gilbert said the CCB is working to help prospective owners through the licensing process and expressed enthusiasm about proposed business concepts.

“A bowling alley, or a massage parlor or infused products. It’s been remarkable to see, and it will be even more remarkable to see what different business models come to life,” Gilbert said.

LaPorte’s client has held a conditional license for two years. He described her planned business as “a supper club” that will serve “sophisticated food” and “happens to offer you cannabis with it instead of a traditional alcoholic beverage.”

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LaPorte predicted growth similar to dispensary expansion after legalization of cannabis in Nevada.

“I’m hoping to see these things open up by next year, no question,” LaPorte said.

The Cannabis Compliance Board provides resources for prospective owners on its website, including presentations from this week’s resource fair.

The only consumption lounge currently open to the public in Nevada is Dazed! which operates at Planet 13 in Las Vegas.

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Northern Nevada nonprofits lose thousands in missing donations after fundraising collapse

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Northern Nevada nonprofits lose thousands in missing donations after fundraising collapse


At least a dozen northern Nevada nonprofits are scrambling to recover after a nationwide fundraising platform failed to deliver thousands of dollars in donations, leaving critical community programs at risk.

Oakland-based Flipcause, a company that processed online donations for nonprofits, is accused of withholding funds before filing for bankruptcy in December. California Attorney General Rob Bonta has since issued a cease-and-desist order, halting the company’s charitable operations.

Officials say more than 3,200 nonprofits nationwide are affected, with over $29 million in donations unaccounted for.

At least 12 organizations in northern Nevada are among them — each now facing financial losses.

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The Down Syndrome Network of Northern Nevada reports losing $33,602. Other impacted groups include:

  • JUSTin Hope Foundation — $8,463
  • Larena Smith Bengoa Run — $7,338
  • Nevada Hands & Voices — $6,283
  • Cancer Community Clubhouse — $5,672
  • Sustainable Tahoe — $1,487
  • Urban Cowgirl — $1,262
  • I School — $1,050
  • Reno Tahoe Athletics — $834
  • Transgender Allies Group — $500
  • Fire & Ice Horse Training — $201
  • Nevada Humanities — $142
Staff work with clients at the Down Syndrome Network of Northern Nevada (News 4)

For the Down Syndrome Network of Northern Nevada, the loss is immediate and deeply personal.

“We’ve lost about 30% of our operating budget for this year,” said Christina Ugalde, the Executive Director of the Down Syndrome Network of Northern Nevada.

The nonprofit provides support and programming for hundreds of families in northern Nevada through grants and community support.

“We are funded about 90% by individual donations,” Ugalde said. “So what’s happened to us has been absolutely devastating.”

The organization has served the region for nearly two decades, offering social programs, events and resources for individuals with Down syndrome and their families.

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“For our families, it is so important that they feel a part of the community,” Ugalde said. “Getting the diagnosis of Down syndrome can be a very isolating thing for a lot of families.”

Some of the now missing funds were raised during the group’s largest annual fundraiser in September, the Buddy Walk. Ugalde said the organization submitted a request for the money, which typically arrives within 10 business days.

“It didn’t,” she said.

Instead, she says Flipcause repeatedly assured her the funds were on the way.

“They came back with all sorts of responses the money was on its way,” Ugalde said.

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Weeks turned into months. Then came the bankruptcy filing — with no warning to many nonprofits still waiting for their money.

“We’re out $33,602,” Ugalde said. “That affects all of our families and the individuals that have Down syndrome with the amount of events that we’re able to put on.”

Despite the financial strain, she says the organization is determined to continue serving families — even as uncertainty remains about whether any funds will be recovered.

“I would love for everyone to get their money back,” Ugalde said. “I hope that through the bankruptcy process, we get something back.”

The California Attorney General’s Office is urging affected nonprofits to file complaints as part of the ongoing investigation.

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In the meantime, organizations across northern Nevada are turning to their communities for help — hoping to replace what was lost and keep essential programs running.

For families who rely on those services, the stakes are deeply personal.

“These programs mean connection, support and belonging,” Ugalde said. “We don’t want that to go away.”



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Motorcyclist killed in Las Vegas Valley crash

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Motorcyclist killed in Las Vegas Valley crash












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