Maryland Marijuana Social Consumption Establishment License

What Is a Marijuana Consumption Lounge in Maryland?

A cannabis consumption lounge in Maryland is an establishment licensed by the Maryland Cannabis Administration to provide a regulated environment for persons of legal age (adults aged 21 or older) to consume cannabis products on site, in a way similar to how cafes and bars operate for alcohol. Maryland cannabis laws allow consumption lounges to provide single-serve cannabis-infused products, including beverages and edibles, obtained from licensed growers, processors, and dispensaries. However, no infusion or preparation of cannabis in food may occur on consumption lounge sites. While indoor smoking and vaping of cannabis products are generally prohibited at consumption lounges, state law allows local jurisdictions to permit outdoor vaping and smoking of cannabis at these facilities.

Furthermore, cannabis consumption establishments in Maryland are prohibited from permitting on-duty employees to use cannabis on the premises. They are also not allowed to distribute complimentary cannabis samples, permit the use of alcohol or tobacco products, or engage in any activity that requires a separate license, such as cultivation, processing, or retail dispensing of cannabis. In addition, individuals under the age of 21 may not enter a cannabis consumption lounge.

Maryland Marijuana Consumption Lounge Laws in 2025

The premise for on-site cannabis consumption lounges in Maryland was laid by the Cannabis Reform Act (CRA), enacted in 2023. The CRA authorized the Maryland Cannabis Administration (MCA) to issue licenses for establishments where adults, aged 21 and over, can consume cannabis on the premises. The CRA also emphasized social equity, ensuring that communities disproportionately affected by previous cannabis prohibitions have opportunities in the emerging market.

In 2025, Senate Bill 215 defined specific operational guidelines for cannabis consumption lounges in the state. SB 215 provides for the following:

• Licensing Cap: The MCA is authorized to issue up to 15 on-site consumption lounge licenses.​
• Social Equity Priority: Until July 2028, only applicants meeting social equity criteria are eligible to apply for these licenses.​
• Local Jurisdiction Approval: Lounges may operate only in counties or municipalities that have enacted legislation permitting such establishments.
• Consumption Methods: While vaping and the consumption of edibles are permitted, indoor smoking of cannabis is prohibited. Outdoor smoking may be allowed, subject to local ordinances.​
• Product Restrictions: Lounges may offer single-serving cannabis-infused products, such as edibles and beverages, with a maximum of 5 milligrams of THC per serving. Patrons are not allowed to bring their own cannabis products into the establishment.​
• Prohibited Activities: The consumption of alcohol or tobacco on the premises is strictly forbidden. Additionally, lounges cannot cultivate or process cannabis, nor can they add cannabis to food prepared on-site.​
• Employee Training: All employees must complete annual responsible vendor training programs to ensure they are equipped to manage safe consumption practices and educate patrons accordingly.

Does Maryland License Marijuana Consumption Lounges?

Yes. Maryland licenses marijuana consumption lounges under a regulated framework established by the Cannabis Reform Act of 2023. To operate legally, a consumption lounge in the state must obtain a license from the Maryland Cannabis Administration (MCA). Local jurisdictions have the authority to permit or restrict the operation of consumption lounges within their boundaries. Therefore, prospective lounge operators must ensure compliance with both state and local regulations.

How to Get a Marijuana On-Lounge Consumption License in Maryland

Maryland’s Cannabis Reform Act establishes the legal framework for applying for cannabis licenses in Maryland. As part of the eligibility requirements for applying for a cannabis consumption lounge license, the applicant must own or lease the premises where the lounge will operate. If leasing, the lease term must match or exceed the duration of the license, which is valid for 5 years. There is an exception to this rule for applicants leasing property from a government agency, provided that appropriate documentation outlining the terms of occupancy is submitted with the application.

In addition, the location of the proposed lounge is strictly regulated. Maryland law prohibits a cannabis consumption lounge from being situated within 500 feet of school grounds or within 200 feet of a house of worship. Prior to your application, you must also determine if you want to apply for an open standard license or a social equity license. Pursuant to the Maryland Cannabis Regulatory Act, a social equity applicant is an applicant that has a minimum of 65% ownership and control held by one or more persons who fulfill one or more of the following conditions:

• Residency Requirement: Must have lived in an area significantly affected by social or economic disparities for at least 5 of the 10 years immediately before submitting the application.
• Educational Background: Must have attended a public school located in a disproportionately impacted community for a minimum of five years.
• Higher Education Eligibility: Must have studied at a four-year college or university in Maryland for at least two years, where 40% or more of enrolled students qualify for Pell Grants, indicating a high percentage of students from low-income backgrounds.

To initiate the application process, you may follow these steps:

• Prepare Required Documentation: After confirming your eligibility, the next step is to gather and prepare all necessary documents required by the Maryland Cannabis Administration (MCA). These documents include:

  • Operational Plan
  • Business Plan: This document must demonstrate a likelihood of success and sufficient ability and experience on the part of the applicant, and provide for appropriate employee working conditions
  • Diversity Plan
  • Attestations, including signed operational agreements and ownership disclosures
  • Social Equity Verification Report from Creative Services, Inc. (if applicable)

  All documentation must comply with Maryland cannabis regulations. For instance, your operational plan must include employee training programs that mandate annual responsible vendor training. You must also ensure that no cannabis use or product display is visible from outside the facility. Additionally, your consumer education materials must meet standards set by the Cannabis Public Health Advisory Council.

  Incomplete or non-compliant applications will be disqualified from the lottery to be conducted for applicants, meaning you must wait until the next licensing round.

• Use Official MCA Templates: The MCA provides specific templates for each required document. Using these templates is important to meet content and formatting standards. Applicants are strongly encouraged to review the MCA Application Evaluation Criteria, which outlines how each submission will be assessed on a pass/fail basis.

• Submit Online via Maryland OneStop: Applicants must create an account and submit their complete application through the Maryland OneStop portal.

• Pay the Application Fee: A non-refundable application fee of $5,000 is required at the time of application submission. Payment is made electronically either via a credit card or ACH transfer through the OneStop portal.

• Final Review Before Submission: Carefully review your application to confirm that all documents are accurate and complete. Once submitted, applications cannot be changed or withdrawn.

• Application Review (Pass/Fail): The MCA will conduct a pass/fail review of your application to determine whether it meets all requirements. Only applications that pass this review will move forward. Hence, review the MCA’s evaluation guidelines thoroughly to understand how your submission will be assessed.

• Lottery Selection: Applications that pass the initial review will be entered into a randomized lottery system, which is divided by region, municipality, or county, based on population. Applications selected through the lottery will proceed to the next phase for further review.

• Additional Requirements for Selected Applicants: If your application is chosen in the lottery, the MCA will request additional documentation to verify your submission. You will have 10 calendar days to submit the requested materials. MCA will then thoroughly verify your application. If everything is approved, you will receive a Conditional License.

  It is important to note that a Conditional License does not permit you to begin operations. Instead, it provides an 18-month period during which you must meet all final requirements to obtain your permanent license.

• Submit Supplemental Application and Await Final Approval: Once you receive your Conditional License, you must complete a supplemental application that includes:

  • Criminal background checks
  • Financial disclosures
  • Information on other cannabis-related licenses
  • Authorization for MCA to verify information with other jurisdictions

Note that under the Cannabis Reform Act, an application for a cannabis license may be denied if the applicant has been convicted of or has entered a plea of nolo contendere (no contest) to, a criminal offense that involves moral turpitude. Offenses considered to involve moral turpitude generally relate to acts of dishonesty or fraudulent conduct. These may include, but are not limited to, felony convictions for the following types of crimes:

• Murder
• Attempted murder
• Theft
• Robbery
• False pretense
• Embezzlement
• Burglary
• Treason
• Forgery
• Fraud
• Perjury

Additionally, you must show proof of site control and demonstrate that your local government (county or municipality) has issued a zoning permit or business license for your planned consumption lounge in accordance with Alcoholic Beverages and Cannabis Article, Section 36-405 of the Annotated Code of Maryland.

Note that the Maryland Cannabis Administration (MCA) has yet to announce the application window for cannabis consumption lounge licenses. However, the application window is widely anticipated to open in mid to late 2025.

How Much Does a Marijuana On-Lounge Consumption License Cost in Maryland?

There is a $5,000 non-refundable application fee for a cannabis consumption license and a $10,000 licensing fee due if the application is successful.

Are there Local Regulations for Cannabis Consumption Lounge Businesses in Maryland?

Yes. Local municipalities have the right to opt out of allowing consumption lounges within their jurisdictions, but such decisions must have been made by local legislation passed prior to the state’s opt-out deadline. Also, before applying, an applicant must also notify the local municipality at least 30 days in advance of filing their application. Community boards and local clerks may submit support or opposition statements to the MCA, which will consider these opinions during the licensing review process.

Can Licensed Marijuana Consumption Lounges Hold Other Cannabis Licenses in Maryland?

No. Maryland law prohibits licensed consumption lounges from engaging in activities that would require additional licenses, including cultivation, processing, or dispensing of cannabis. This restriction ensures that consumption lounges operate solely as locations for on-site consumption and therefore cannot hold other cannabis licenses in Maryland.