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Liquor Distributors Sue State for Lack of Marijuana Distribution Licenses

Liquor Distributors Sue State for Lack of Marijuana Distribution Licenses

While most the US states have been busy legalizing and regulating medical and non-medical marijuana for residents, some, like Nevada, are planning to open grounds for tourists as well. If everything goes well, it won’t be very long before people in Nevada will be smoking pot. But, like it has always been with marijuana, there is yet a hindrance.

The state is awaiting a decision from the judge. Apparently, it hasn’t been decided yet on who will have the distribution rights for the drug that could pose as nothing less than a cash crop for the state. There have already been disputes between the medical marijuana dealers of the state and the influential liquor lobby. Both want the license to distribute marijuana.

Nevada is also among the only pot-legal states in the US where distributors of alcohol have the license to distribute marijuana as approved by the voters back in November. Unfortunately for the alcohol distributors, they failed in expressing their interest in the matter which led the state to invest powers of distribution back into the existing marijuana shops. They will take over the distribution until January 2018 when the permanent regulations will take place.


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The liquor distributors haven’t backed off from the matter altogether. Just when we thought things were settled, distributors of alcohol went on to file a lawsuit. They argue that it is them who should be given the opportunity to distribute cannabis rather than those existing cannabis shops. This lawsuit has come at a time when the state was looking forward to launching sales of non-medical cannabis in MMJ dispensaries. This launch will commence from the 1st of July.

It was only recently when Judge Wilson of the City District waved the decision in the favor of alcohol distributors. He has blocked the licensing of marijuana distributors temporarily and set a hearing in the coming week. According to the judge, alcohol distributors were and should be given the right to distribution as the state wants marijuana to be regulated just like alcohol.

A lawyer—Kevin Benson—from the Independent Alcohol Distributors said that the state’s tax department just assumed about alcohol distributors not being interested in distributing cannabis. He said that by making this false assumption, all the tax department did was to step outside its authority to make such bold assumptions.


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The tax department had said that it was due to the lack of time and that they needed to run the program by the first week of July. Kevin, on the contrary, wrote that there are no such time-restraints and that all this is just a hoax to impede alcohol distributors from getting a qualified license.

According to Nevada Cannabis Coalition, liquor distributors just want a monopoly on the distribution of marijuana, and that if the licensing is delayed, it would cost millions of dollars to the state.

In places like Washington, the entire pot business is being regulated by the Liquor Control Board while in Colorado, people neither have access to marijuana nor alcohol licenses.

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