The federal government rescheduled medical marijuana from a Schedule I to a Schedule III, but what will that ultimately mean for the future of Nevada’s cannabis industry and could full federal legalization be on the horizon?

On June 29, the federal government will hold a hearing that will help decide whether all marijuana (not just medical cannabis and FDA-approved products) moves to Schedule III. Seven outside parties got a seat in the room. All seven oppose rescheduling. Not one supporter of reform made the list.

The top DEA administrative law judge will once again hear arguments for and against downgrading marijuana's status under federal law, but marijuana rescheduling is not guaranteed.

Nevada forfeits an estimated US$80 million in annual cannabis tax revenue because state regulations impose a 1,500-foot buffer between cannabis retailers and gaming venues, preventing sales in and around the Las Vegas Strip, according to a UNLV Cannabis Policy Institute report published on Thursday.

The findings emerged from the 3rd Annual Gaming & Cannabis Policy Discussion, hosted by the University of Nevada Las Vegas (UNLV) Cannabis Policy Institute and International Gaming Institute. Lawmakers and officials at the event discussed the implications of regulations that prevent the full integration of the licensed cannabis sector with the state’s established gaming industry.

At the University of Nevada Las Vegas (UNLV) Cannabis Policy Institute and International Gaming Institute’s 3rd Annual Gaming & Cannabis Policy Discussion late last month, lawmakers and officials discussed the impact of regulations that have kept the licensed marijuana industry from fully integrating with the state’s storied gaming sector.

UNLV Cannabis Policy Institute reports state losing tons of money from keeping them separated

Nevada’s rigid legal separation between the cannabis and gaming sectors is acting as a massive weight on the state’s economy, according to a recent report from the University of Nevada, Las Vegas (UNLV) Cannabis Policy Institute.

According to data from a University of Nevada study, 70% of US adults support allowing cannabis consumption spaces in casinos.

Experts across gaming, cannabis policy, and state government say expanding access to legal, regulated cannabis in Las Vegas could help bolster tourism and support the broader gaming industry, particularly as visitation trends soften and competition for consumer spending intensifies.

As of two weeks ago, marijuana belonged to the same controlled-substance classification as heroin and LSD. But on April 23, the U.S. Department of Justice reclassified medicinal and FDA-approved cannabis from Schedule I to Schedule III, the group that also includes lower-risk, less-abused drugs such as ketamine and steroids. What does this mean for Nevada’s commercial marijuana industry? That part remains unclear, at least in the short term.

The final rule from the Office of the Attorney General places all drug products that contain marijuana and are federally approved in Schedule III of the Controlled Substances Act. The move shifts cannabis from Schedule I, alongside substances like heroin and LSD, to Schedule III, with the likes of codeine and ketamine.