As New Jersey’s cannabis industry continues to expand, the state has reached a significant milestone with the approval of its first four consumption lounges, marking a new chapter in legal cannabis access and social consumption. The Cannabis Regulatory Commission has approved High Rollers and SunnyTien in Atlantic City, URB’N Dispensary in Newark, and Gynsyng Dispensary in Merchantville as the state’s inaugural consumption venues.
These lounges operate similarly to bars but focus exclusively on cannabis consumption rather than alcohol. The venues feature televisions, music, and entertainment events including karaoke, trivia nights, and gaming activities. All lounges maintain strict age restrictions, requiring patrons to be at least 21 years old with valid photo identification for entry.
These venues mirror traditional bars while exclusively serving cannabis consumers through entertainment, gaming, and social activities for adults 21 and older.
The approval process initially prioritized social equity businesses, which are ventures owned by individuals from 55 economically disadvantaged areas across New Jersey. Following these initial rounds, the program expanded to include diversely owned businesses and microbusinesses. As of July 2025, all Class 5 dispensaries and medicinal permit holders became eligible to apply for lounge endorsements. New Jersey currently has approximately 240 licensed medical and adult-use dispensaries across the state.
Application fees total $1,000 for the initial process, with annual licensing fees of $5,000 for standard businesses and reduced rates of $1,000 for microbusinesses. While no statewide cap exists on lounge numbers, each business can operate only one lounge per license.
Legal restrictions govern lounge operations strictly. Consumption must remain onsite, with open containers prohibited from leaving premises. Leftover cannabis products require disposal at the venue. Lounges cannot sell food or share retail space with food vendors, though outside food delivery is permitted where locally allowed. Alcohol remains completely prohibited in these designated cannabis venues.
Municipal approval represents a critical component of the licensing process. Applicants must secure both state and local government permissions, with municipalities retaining the right to opt out entirely. Local governments can impose additional restrictions regarding operating hours, locations, and proximity to sensitive sites like schools or churches. When municipalities deny applications, operators can request Superior Court hearings within 30 days. Over 200 legal dispensaries currently operate throughout the state, providing a substantial foundation for the expanding cannabis market.
The lounges provide indoor or partially enclosed outdoor spaces with required ventilation systems to guarantee compliance with health and safety standards. Security measures, management protocols, and adherence to New Jersey cannabis laws face ongoing regulatory monitoring. These establishments join a growing national trend, though currently consumption lounges are permitted in only about half of states with legal adult-use cannabis.
These consumption lounges represent a significant cultural shift, positioning cannabis as a normalized social activity while providing safe, regulated environments for adult use. The initiative particularly benefits Atlantic City’s entertainment landscape, adding cannabis lounges alongside existing casinos and boardwalk attractions as new options for adult recreation.
