Nevada gaming board bans casino licensees from medical marijuana trade

Nevada GamingLas Vegas Review Journal – The Gaming Control Board told its license holders Tuesday they cannot participate in the state’s potential medical marijuana business. In an industry notice posted to the Control Board’s website, the agency, which is charged with licensing and regulating the state’s casinos and gambling equipment providers, said the federal government views distribution, possession and sale of marijuana as a crime.

“Accordingly, unless the federal law is changed, the board does not believe investment or other involvement in a medical marijuana facility or establishment by a person who has received a gaming approval or applied for a gaming approval is consistent with the effective regulation of gaming,” Gaming Control Board member Terry Johnson wrote in the notice.

“Further, the board believes that any such investment or involvement by gaming licensees or applicants would tend to reflect discredit upon gaming in the state of Nevada,” Johnson said.

In an interview last month, Control Board Chairman A.G. Burnett said the agency was advising license holders and potential gaming license applicants to stay away from medical marijuana. The board was developing a list of questions and concerns when its comes to medical marijuana.

“That would give us some cause for concern,” Burnett said of license applicants having involvement in the medical marijuana business. “We would be remiss if we didn’t consider that activity as part of the investigation. It’s a gamble and you need to think it through.”

On Tuesday, Burnett said the notice, “is a clear understanding of our position.”

Clark County became the first jurisdiction in Southern Nevada to accept applications for marijuana-related businesses after approving regulations in March.

Medical marijuana has been legal in Nevada since 2000. Last year, state lawmakers enacted a law to allow dispensaries to operate, calling for up to 66 potential medical marijuana outlets throughout Nevada. Distributing medical marijuana is under a county-by-county framework.

State Sen. Greg Brower, R-Reno, who is a partner in the Snell & Wilmer law firm, said the Control Board made the correct decision in telling license holders to back away from medical marijuana, even through he supported the legislation last year.

“This is another example of an unintended consequence from the inconsistencies with the law,” Brower said. “I voted for it, but I had significant reservations. My reservations have increased.”

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