Integrating cannabis and gaming: re-evaluating their business intersection

TL;DR

This paper explores how cannabis and gaming industries intersect, focusing on legal and regulatory challenges in the U.S., particularly in Nevada.

Contribution

The paper introduces a novel analysis of the legal and business implications of separating cannabis and gaming industries.

Findings

Nevada is recognized as a leader in both gaming and cannabis industries.

Federal enforcement unpredictability poses risks to cannabis innovation in gaming.

There is growing support for integrating cannabis into the gaming sector.

Abstract

This paper examines the intersection of cannabis and gaming laws in the United States. A particular emphasis is placed on Nevada for its recognition as a leader in the gaming and cannabis industry. To better understand the issue, we explored various factors contributing to the separation, ranging from federal to local concerns at both the operational and state levels. Given the unpredictability of federal enforcement, gaming regulators and state regulators must address the risks associated with cannabis innovation. Despite the exclusion, there is growing support for incorporating cannabis into the gaming sector, similar to other markets, particularly in high-profile areas like the Las Vegas Strip. The paper questions whether the separations are appropriate within legal, policy, and business structures, apart from the activities. While acknowledging that public initiatives focused on practical activities are essential, this paper focuses on the framework that led to the original findings. Moreover, this paper examines the regulatory differences between jurisdictions that permit gambling and gaming, and identifies potential risks associated with the separation of these industries.