First On-Site Cannabis Consumption Areas Approved By New Jersey Cannabis Regulatory Commission

During their July 15, 2025, public meeting, the New Jersey Cannabis Regulatory Commission (NJ-CRC) approved four on-site consumption area endorsements, the first in the state (1,2). The approval brings “a significant step forward in expanding access to safe, regulated spaces for cannabis use in New Jersey,” (1).

With these endorsements, on-site consumption areas will grant licensed cannabis establishments to design spaces for both recreational consumers and medical cannabis patients to be able to consume cannabis at the location.

“This is a major milestone in New Jersey’s cannabis industry. These designated spaces provide consumers with safe and legal options for cannabis consumption,” said Dianna Houenou, Commission Chairwoman (1). "Whether individuals cannot consume cannabis inside their homes or simply wish to consume cannabis legally and responsibly, these areas provide a practical solution. We are proud to support this next phase of safe-use infrastructure in our state.”

A recent press release disclosed that the four consumption area endorsements approved were for URB’N Dispensary which is located in Newark, Merchantville’s Gynsyng, and two locations in Atlantic City called High Rollers Dispensary and SunnyTien Dispensary (1). Every one of these businesses are Diversely Owned Businesses, “minority-owned, woman-owned, or disabled veteran-owned, as certified by the New Jersey Department of Treasury,” (1).

In order to obtain an endorsement for a cannabis consumption area, applicants must receive municipal approval as well as meet NJ-CRC Notice of Application Addendum (3) requirements for ventilation, facility, and safety (1,2). Once the approval from the state has been granted, licensed retailers will be required to “pass a final site inspection before their consumption areas can open for business,” (1). The press release mentioned that (1), “Approved consumption area endorsement holders are expected to uphold rigorous standards to ensure that consumption areas remain secure, well-managed, and compliant with state law.”

Ganjapreneur (2) reported that “Cannabis consumption area applications in New Jersey opened January 2 for social equity designated businesses, April 2 for micro and Diversely Owned businesses, and July 2 for all other operators.”

Although the state is advancing their cannabis marketplace with these on-site consumption areas, consumer safety should be kept in mind once these locations begin opening. In March 2025, a press release (4) mentioned safety concern findings in regulated cannabis products sold in New Jersey. The results from a secret shopper program performed by The Safe Leaf Society, disclosed that these cannabis products that were acquired from dispensaries, failed recent independent safety tests for molds and pathogens. Additionally, THC levels found on the product labels showed that they were inflated.

References

1. CRC approves first four cannabis consumption area endorsements in July public meeting https://www.nj.gov/cannabis/news-events/approved/20250715.shtml (accessed Jul 17, 2025).
2. Branfalt, T. New Jersey regulators approve first endorsements for on-site cannabis consumption https://ganjapreneur.com/new-jersey-regulators-approve-first-endorsements-for-on-site-cannabis-consumption/ (accessed Jul 17, 2025).
3. Notice of Application Acceptance Addendum (“Addendum”) https://www.nj.gov/cannabis/documents/rules/NOA%20Addendum%20-%20Consumption%20Areas.pdf (accessed Jul 17, 2025).
4. Colli, M. New Jersey’s legal cannabis supply sparking safety concerns with lab testing https://www.cannabissciencetech.com/view/new-jersey-s-legal-cannabis-supply-sparking-safety-concerns-with-lab-testing (accessed Jul 17, 2025).