Denver Issues $10,000 Fine to Cannabis Lounge

The Denver Department of Licensing and Consumer Protection last week ordered a cannabis lounge to pay $10,000 for alleged violations related to events hosted at the business last year, the Denver Post reports.

Tetra Lounge, which holds a marijuana hospitality license, was accused last year by city officials of allowing illegal cannabis product sampling and sales on April 20 and July 10, two significant cannabis holidays. Officials also cited evidence of illegal on-site consumption.

Under the hospitality licenses, patrons are only allowed to smoke cannabis that they bring with them into the establishment. On-site sales are prohibited.

Tetra Lounge could have had its license revoked over the incident, according to the report, but the business was given 90 days to pay the fine and one year of probation. Subsequent violations during the probation period will incur an additional $10,000 fine, and the lounge will be forced to close for 60 days.

Denver Department of Licensing and Consumer Protection spokesperson Eric Escudero said it was the department’s first disciplinary action against a marijuana hospitality business.