Cannabis will be legal for personal consumption Oct. 17, but regulations at the local level are still being set. (Getty Images)
“Legalize it!” Peter Tosh wailed in the mid-1970s. More than four decades later Canada became just the second nation to legalize recreational cannabis.
And on Oct. 17, it will be legal for adults 18 and older to legally grow, buy and sell small amounts of cannabis for personal consumption in Canada. Edibles will not be available for at least another year.
Regulations at the local and province level are still being hashed out, and several venue executives were loath to speak about the issue or share their plans before the legal street date. Still, legal marijuana likely means a bigger presence at concerts and events, so enterprising venues may also see more cash in the till.
Smoking is not allowed in public spaces in Canada, so firing up while in the venue will still be frowned upon by the authorities. But some venue operators expect that some accommodation will be made in designated outdoor smoking spaces to include marijuana alongside tobacco products.
“I don’t anticipate being able to sell (marijuana) like draft beer,” mused Andrew Nash, general manager with Spectra Venue Management, which operates the Abbotsford Centre in Abbotsford, British Columbia. But he adds, “I think there’s opportunity on the music and presentation side even if you’re not smoking in the arena.”
Nash says the executive team of the nearly 8,000-seat venue near Vancouver has been getting pointers from a sister facility in Everett, Wash., that went through this process when that U.S. state legalized cannabis in 2012.
While it’s not yet clear how Canadian authorities will regulate cannabis sales for venues, Washington state does not allow alcohol license owners to sell marijuana.
Another potential pitfall would be Canadian officials treating marijuana the same as tobacco products, which concerns Nash, who worries it would stymie streams of revenue from advertising, activation and sponsorships.
Nash goes as far as envisioning naming rights: “What if Cannabis Kings wants to come and put their name on the building? Then what? If they come cash in hand,” the Abbotsford executive pauses, adding, “I have to imagine we’re not the only ones having this conversation. As of Oct. 17, what’s the difference between Molson and Labatt’s or Cannabis Kings?
“I think it will hopefully increase our ability to generate alternative revenue through sponsorships. …The perception has changed from when the (Grateful) Dead was around to now. I’m sure someone is ready and waiting to cash in on it.”
Marijuana tourism has become a boon for some U.S. states, and executives at several venues near the border say they would welcome additional visits from Americans looking to spend their greenbacks, which stretch some 30 percent further in Canada given the favorable exchange rate.
“I think it’s a matter of time before that shows itself in numbers,” predicted Kevin Donnelly, senior vice president of venues and entertainment for True North Sports and Entertainment, which owns and operates Bell MTS Place and Burton Cummings Theatre in Winnipeg, Manitoba.
He added, “(First) it’ll be college kids coming up from border campuses. I think it’s a thing of the future and it’ll be interesting to see what kind of volume we get and hopefully they get treated well on the way home (re-entering the U.S.).”