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The Denver Department of Licensing and Consumer Protection fined Tetra Lounge $10,000 and placed it on one year of probation for illegal cannabis sales and consumption. The business was cited for allowing product sampling and on-site sales during events last year, marking the city's first disciplinary action against a marijuana hospitality business.

Denver Issues $10,000 Fine to Cannabis Lounge

Feb 23, 2026

Source:

Graham Abbott

Ganjapreneur



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.

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