Denver fines cannabis spot Tetra Lounge $10,000 for unlawful activity

A Denver Cannabis Lounge Avoids License Revocation, Pays $10,000 Fine

Tetra Lounge, a popular cannabis lounge in Denver, was recently fined $10,000 by the city’s Department of Licensing and Consumer Protection after violating laws during special events held on April 20 and July 10. The lounge, located at 3039 Walnut St., has been given a probationary period of one year and must pay the fine within 90 days to remain open. If another violation occurs, Tetra Lounge will face an additional $10,000 fine and a 60-day closure.

This case marks the first licensing discipline for a marijuana hospitality business in Denver, according to department spokesperson Eric Escudero. Owner Dewayne Benjamin has expressed plans to appeal the decision.

City officials initiated an investigation after observing unlawful activities during visits to Tetra Lounge on April 20 and July 10. Inspectors reported instances of marijuana sales and consumption on the premises, which is not permitted under the lounge’s license conditions. Additionally, vendors were found distributing illegal substances such as psilocybin and DMT at the events.

Tetra Lounge, established in 2018, operates as a cannabis hospitality business where patrons bring their own marijuana to smoke on the outdoor patio. Despite strict regulations against marijuana sales, inspectors noted instances of product distribution inside the building, leading to the recent enforcement action.

Benjamin has denied the allegations and criticized the city’s handling of the situation, citing negative impacts on Tetra Lounge’s reputation and business operations. This incident follows previous scrutiny faced by the lounge, including a temporary closure in 2022 and a citation for operating without the required license in 2023.

In response to the fine, Duplechian emphasized Benjamin’s lack of accountability for the violations, stating that responsibility cannot be evaded due to personal involvement. The ongoing dispute highlights the challenges faced by cannabis businesses in navigating evolving regulatory frameworks.