It’s not called Sin City for nothing.
A shiny cesspool of greed and gluttony, Las Vegas creates and destroys wealth faster than hedge fund managers on coke binges, all against the backdrop of booze, hookers, and slot machines.
But I’m not saying this to be critical. After all, Las Vegas is a shining example of how the free market works. And that’s a good thing. Because of Las Vegas, more than 900,000 citizens of Nevada have jobs.
That’s a pretty big deal when you consider the total population of Nevada is 2.7 million.
Now while I have no interest in gambling or the grimy neon glow of the Strip, I could never criticize Vegas for embracing the basic fundamentals of free market capitalism.
I just wish it would embrace those fundamentals when it came to cannabis.
Booze, yes. Weed, no.
As reported by Leafly, the Nevada Gaming Commission has unanimously agreed that casino lincesees should be discouraged from hosting cannabis-related trade shows or conferences in casino convention spaces and ballrooms.
“The marijuana industry and the gaming industries are two different industries and the two will not meet,” said commission chairman Tony Alamo. Alamo cited marijuana’s classification as a Schedule 1 controlled substance under federal law. “If licensees take that and move backwards from there I think they’re going to find themselves in the right place.”
It seems the Gaming Commission is concerned about federal law, yet there have been plenty of cannabis-related conferences and events in Vegas long before the Silver State legalized adult-use cannabis.
And by the way, it’s not federally illegal to talk about the cannabis industry at a convention or trade show.
Of course, Vegas casinos have been very outspoken in their decision to disallow cannabis use, suggesting that it didn’t want to violate federal laws.
Despite the fact that Vegas casinos probably have to jump through a thousand hoops to keep the feds off their backs, I’m still calling bullshit. Rest assured, dear reader, if it was discovered that cannabis use somehow resulted in more gambling, they’d change their tune in a heartbeat.
Truth is, I’m still not exactly sure why the Gaming Commission is so anti-cannabis.
Is there an alcohol industry influence here?
Is casino mogul Sheldon Adleson – one of the most despicable prohibitionists on the planet – pulling strings?
I honestly don’t know.
But here’s what I do know …
No matter how hard they try, they’ll never be able to put this cat back in the bag.
Now that adult-use cannabis has been legalized in Nevada, the industry is only going to continue to grow. In fact, some are suggesting that Nevada could end up being one of the most profitable cannabis markets in the country.
Back in the Day
What I find interesting is that Las Vegas initially became a mecca of gambling, booze, and underworld shenanigans in defiance of federal law.
In fact, in the earliest days of Vegas casinos, the federal government disallowed folks working on the Hoover Dam from going to Las Vegas.
Unwilling to relent against federal thuggery, however, Vegas responded with a giant middle finger and eventually, more casinos.
I love that!
Like I said, I’m not a gambler, but I love that in the case of Las Vegas, market dynamics overpowered the heavy hand of the state. So I have to admit, it saddens me a bit to see these casinos fight against an industry that is so reminiscent of the early days of Nevada’s gambling industry.
Of course, none of that really matters, because there really is no way these prohibitionists in Vegas can stop the flood of cash that’s going to help strengthen the Nevada economy. And that is why I continue to look for new opportunities to invest in the Nevada cannabis market.
Getting a Piece of the Action
Earlier this week, Terra Tech Corp (OTCBB: TRTC) signed a LOI to acquire 50% of a cannabis cultivation and production facility run by Nevada-based cannabis provider, NuLeaf.
The acquisition is expected to fast track Terra Tech’s cultivation and production facilities allowing them to introduce their wholesale brand as well as support increasing demand for cannabis products throughout Nevada.
NuLeaf Sparks holds a Nevada medical cannabis cultivation license and is in the process of constructing a 30,000 square foot cannabis cultivation facility in Sparks, Nevada. NuLeaf Reno holds a Nevada medical cannabis production license and is in the process of constructing a 15,000 square foot cannabis production facility in Reno, Nevada. Both facilities are expected to be completed by the end of the year.
I do like Terra Tech, but I’m also a fan of the Canadian Bioceutical Corporation (CSE: BCC) (OTC:CBICF), which just a few months ago, acquired a 100% interest in GreenMart of Nevada, which is an award winning licensed cultivation, production and wholesale business in Vegas.
That acquisition gives BCC a prime entry point into the Nevada market.
In addition to BCC’s exposure to Nevada, the company also has exposure to the Arizona market and the Massachusetts market, which is one of the most lucrative in the country as there are strict limits on licenses.
As well, BCC has recently entered into a joint venture with Israeli-based Panaxia Pharmaceuticals, which is a manufacturer of pharmaceutical dosage forms incorporating cannabinoids as an active ingredient. The company is part of a larger group of companies which have manufactured pharmaceuticals for more than 40 years.
This isn’t to say BCC comes with some risk, but at current levels, it’s a bit undervalued. The stock is worth at least $0.40. You can buy it now for about $0.33.
Not a bad deal for a company that’s going to be a part of the insanely profitable Nevada cannabis market – despite how much the Nevada Gaming Commission huffs and puffs.
