NY cannabis merchants fume they can’t open pot lounges because of foot-dragging by regulators

New York Post - Mar 23rd, 2025

Operators of licensed cannabis stores in New York are frustrated by the inability to open pot lounges, as state officials have yet to establish necessary regulations. The Marijuana Regulation and Taxation Act of 2021 legalized marijuana and allowed for the creation of consumption sites, but dispensary owners like Arish Halani of Herbwell Cannabis are unable to open such venues due to regulatory delays. Many dispensaries, including The Cannabis Place in Queens, have prepared spaces for lounges, hoping to increase revenue but remain disappointed by the prolonged wait for guidelines from the Office of Cannabis Management (OCM).

The context is set against the backdrop of a rapidly growing cannabis market in New York with 333 licensed dispensaries generating over $1 billion in sales. However, the OCM prioritizes establishing a stable supply chain over consumption licenses, citing public health and safety concerns. Despite Governor Kathy Hochul's efforts to crack down on illegal dispensaries, legal operators still face competition from the black market. The delay in regulation is seen as a missed opportunity for economic growth, with industry insiders suggesting resistance from state health officials due to potential conflicts with the Clean Indoor Air Act.

New York Cannabis Marijuana Regulation And Taxation Act Office Of Cannabis Management Herbwell Cannabis Arish Halani Consumption Sites Regulatory Delays Clean Indoor Air Act

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RATING

6.8

Fair Story

Consider it well-founded

The article effectively highlights the frustrations of cannabis business operators in New York due to regulatory delays in establishing consumption lounges. It provides a timely and relevant narrative that resonates with current public interest in cannabis legalization and economic implications. However, the article could benefit from a more balanced representation of perspectives, particularly from regulatory and public health officials, to provide a more comprehensive understanding of the issue. The reliance on business operators as primary sources limits the depth of analysis, and greater transparency about the regulatory process would enhance the article's credibility. Overall, the article is well-written and accessible, engaging readers interested in the economic and regulatory aspects of the cannabis industry.

Accuracy

The article accurately reports on the delay in implementing regulations for cannabis consumption lounges in New York, citing the Marijuana Regulation and Taxation Act of 2021 as the legal foundation for these lounges. The claim that the Office of Cannabis Management (OCM) has yet to draft the necessary rules is consistent with the information available from authoritative sources. However, the article could benefit from more precise data, such as specific timelines for when these regulations might be expected, which is not provided. Additionally, while the article mentions the resistance of state health officials due to the Clean Indoor Air Act, it does not provide direct quotes or documents from these officials, which would strengthen the factual basis.

Balance

The article primarily presents the perspective of cannabis store operators who are frustrated by the regulatory delays. This focus provides a clear narrative but does not equally represent the viewpoints of the OCM or public health officials, which could offer a more balanced understanding of the situation. The OCM's response is included, but it is brief and does not delve into the complexities of their decision-making process. Including more detailed input from public health advocates or officials would enhance the balance of perspectives.

Clarity

The article is generally clear and well-structured, making it easy for readers to follow the main narrative about the regulatory delays. The language is straightforward, and the tone is neutral, which aids comprehension. However, some technical terms, such as 'regulatory framework' and 'consumption sites,' could be better explained for readers unfamiliar with cannabis industry jargon.

Source quality

The article relies heavily on quotes from business operators like Arish Halani and Osbert Orduna, which provides firsthand insights into the industry's challenges. However, it lacks diverse sources, such as regulatory officials or independent experts, which could provide a more comprehensive view. The OCM is cited, but the article would benefit from more direct quotes or detailed statements from this agency to enhance the credibility of the information presented.

Transparency

The article provides a basic level of transparency by identifying key stakeholders and their positions. However, it lacks detailed explanations of the regulatory process or the specific reasons behind the delays. The article does not disclose any potential conflicts of interest that might affect the perspectives of the quoted business operators, such as their financial stakes in the opening of cannabis lounges.