Frank Dailey, owner of the Boston Bud Factory in Holyoke, is exploring new regulations that may soon allow his dispensary to establish an on-site lounge where customers can consume cannabis products. The Cannabis Control Commission (CCC) in Massachusetts has approved measures that permit licensed Marijuana Establishments to designate areas for social consumption, potentially transforming the landscape of cannabis use in the state.
The CCC’s regulations, which came into effect in January 2026, aim to promote social consumption of cannabis, though it may take up to a year for the first lounges to open. Dailey envisions that such a space could attract tourists from surrounding states and foster a sense of community around cannabis. “We have an opportunity to expand our client base, and that’s going to be huge for us,” he stated.
New Opportunities and Challenges Ahead
As of early February 2026, there are 686 licensed cannabis operations in Massachusetts, with only 139 eligible to apply for a social consumption license. The CCC has categorized eligible operators into economic empowerment or microbusinesses, delivery-only services, and those participating in the social equity program, which focuses on assisting individuals disproportionately affected by previous drug policies.
Commissioner Bruce Stebbins emphasized the intention behind these regulations: “There were communities and populations that were disproportionately impacted either by over-enforcement of the drug laws or might have been arrested for something that is no longer a crime in Massachusetts.” Dailey’s business qualifies under the social equity program, having roots in Springfield, a city previously marked by high cannabis-related arrest rates.
The CCC’s framework stipulates that establishments must prohibit individuals under 21 from purchasing or consuming cannabis. Additionally, businesses will not be permitted to sell alcohol or tobacco, and customers must be allowed to take home any unused products. While the CCC has outlined these regulations, local municipalities must approve business licenses for lounges to operate.
Municipalities Navigating New Regulations
Zori Alfonso, manager of Zaza Green Cannabis in Springfield, is currently awaiting her opportunity to participate in the new landscape. Her business does not fall into the protected categories set by the CCC. “It’s not in the near future for us, but it’s something we’ve talked about and would like to participate in as soon as we can,” she said.
Alfonso is keenly observing how cannabis lounges operate in other states, aware of the vibrant atmosphere they create. The new regulations not only allow dispensaries to open lounges but also permit consumption at designated events, opening pathways for partnerships with non-cannabis businesses such as yoga studios and cinemas. Stebbins hopes these developments will inspire innovative collaborations in the state.
To ensure safety amid this expanding market, marijuana establishments and their employees will undergo vendor safety training. Businesses will need to implement plans to assist patrons who may overindulge, including clear packaging that indicates how long it may take for effects to occur. Stebbins noted, “We worked closely with the public health and safety community and got a lot of their feedback,” highlighting the CCC’s commitment to responsible consumption practices.
As the cannabis industry in Massachusetts looks to the future, the CCC reported that businesses grossed over $1.65 billion in sales in 2025. This figure sets a new annual record and positions the state for further growth with the introduction of social consumption licenses.
Tim Shaw, Chief Operating Officer of MariMed, anticipates that the opening of lounges will enhance business opportunities. “It’s the next, natural step to normalization,” he stated. He acknowledges the potential for increased costs associated with packaging products for lounges but views the long-term benefits as promising for the industry.
Dailey, reflecting on his own business’s prospects, expressed concerns over the high costs of establishing a lounge. The CCC’s regulations may require extensive HVAC systems to maintain air quality, with estimates suggesting costs could reach up to $1 million. Despite these challenges, he remains optimistic, noting that state grants may provide financial assistance to businesses navigating these new regulations.
As Massachusetts ventures into this new era of cannabis consumption, the CCC’s regulations represent a significant shift, aiming to create a more equitable and accessible market for all entrepreneurs.
