Vegas recently approved Marijuana lounges... I believe Casinos are ok with that because they don’t like Pot smokers in the casinos...Fed rules and stuff.
As for the licensing, I think your opinion makes the most sense. Put up the rules, meet the rules and get licensed... now the clients/dollars decide who stays and who doesn’t.
Any other way leads to either corruption or in this case disgruntled lawsuits.
City of LA and California have screwed themselves over millions in tax rev from rules like these... the black market just laughs as they rake it in.

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