Marijuana consumption business licensing guidance

It is illegal to consume marijuana openly and publicly in the City and County of Denver. But consumption is allowed in establishments that are licensed as marijuana hospitality establishments by the state and the city.

Venues and event holders that host marijuana consumption events that are not licensed are in violation of Denver law and subject to citations, fines and enforcement activity by the City. It is unlawful to engage in any form of business or commerce involving marijuana within the City and County of Denver without local and state licenses.

Marijuana consumption is prohibited at an establishment with a liquor license. Marijuana businesses risk enforcement action if they host or provide product at an unlicensed marijuana consumption event. Additionally, marijuana businesses cannot give marijuana products for free to customers.

For guidance purposes, the following is a non-exhaustive list of businesses that are required to obtain a marijuana hospitality license:

  • Venues that host events advertising for the consumption of marijuana at the event.
  • Shuttles and tour buses that offer marijuana tours and allow guests to consume marijuana within the vehicle.
  • Retail food establishments that allow marijuana consumption on the premises.
  • Businesses that host activities and classes -- such as yoga, cooking, painting, etc. -- that allow marijuana consumption during the class.
  • Any other business that engages in a form of business or commerce involving marijuana consumption on the premises.

Hospitality license types

Marijuana hospitality business license

  • Allows for the consumption of marijuana by those 21 years old and older within the licensed premises.
  • Marijuana sales are not allowed.
  • Patrons can bring their own marijuana to consume.

Marijuana hospitality and sales business license

  • Allows for the consumption of marijuana purchased on-site by those 21 years old and older within the licensed premises. Marijuana sales are allowed.
  • Patrons cannot bring their own marijuana.

Mobile marijuana hospitality business license

  • Allows for the consumption of marijuana by those 21 years old and older within a licensed mobile premises.
  • A "mobile premises" is a licensed premises operated by a marijuana hospitality business in a motor vehicle. Marijuana sales are not allowed.
  • Patrons can bring their own marijuana to consume.

For more information on these license types, see sections 6-217 and 6-218 of the Denver Revised Municipal Code and all applicable state laws and regulations.

Is a hospitality license required?

  • It is illegal to engage in any form of business or commerce involving marijuana within the city without a local and state license. If you are planning on hosting a marijuana event, consider consulting with an attorney to determine whether your event meets the definition of "business" or "commerce," triggering the need for local and state licensure.

Common FAQs if a hospitality license is required

Do I need a license to have my friends consume marijuana at my house?

  • No license is required if you are not engaging in business or commerce involving marijuana. Adults can use marijuana in their homes (but leases might prohibit it, so be sure to check yours).

Do I need a license to offer or sell marijuana for people to consume at my business?

  • A marijuana hospitality and sales business license is required.

What if I market my business as "cannabis-friendly?"

  • You might need a license. If you are engaging in business or commerce involving marijuana, you must have a local and state license. If that business or commerce involves on-premises consumption of marijuana, you will need to have a marijuana hospitality license. You should consult with an attorney to discuss your business model to determine if you require a license.

What if I offer or rent event space for marijuana consumption events?

  • If you are engaging in business or commerce involving marijuana, you must have a local and state license.

What if I offer a class such as yoga, cooking or painting paired with marijuana consumption?

  • If you are engaging in business or commerce involving the consumption of marijuana on the premises, you must have a marijuana hospitality business license.

What if I operate a membership-based business where people must register as a member and pay dues to consume marijuana at my business?

  • If you are engaging in business or commerce involving the consumption of marijuana on the premises, you must have a marijuana hospitality business license.

What if I operate a restaurant that incorporates marijuana consumption?

  • If you are engaging in business or commerce involving the consumption of marijuana on the premises, you must have a marijuana hospitality business license.
  • You must follow the rules about operation of a hospitality business in a retail food establishment.
  • A marijuana hospitality business licensee cannot allow the consumption of alcohol or smoking of tobacco or tobacco products on the licensed premises.

What if I allow marijuana consumption at my liquor-licensed premises?

  • Liquor licensees cannot allow marijuana consumption on their licensed premises, per Colorado liquor rules. They risk disciplinary action, up to revocation of their liquor license.

What if I operate a shuttle or tour bus that allows guests to consume marijuana onboard?

  • A city and state license for marijuana hospitality business with a mobile premises is required.

If you are unsure if your business model requires a license, consult an attorney.

How to apply for a hospitality license

Marijuana hospitality licenses are only open to social equity applicants until July 1, 2027.

Marijuana businesses can only open in certain areas of Denver. A nonbinding proximity check tool for marijuana businesses can be found on our website.

To apply for a new marijuana hospitality business license, visit our website.

Disclaimer: This webpage is for guidance purposes only with the totality of the circumstances determined based on a case-by-case basis. For legal advice, you should consult an attorney. The Department of Excise and Licenses cannot provide legal advice.