Nevada’s adult-use market launched in 2017, but the state’s cultivation side is tightly regulated from seed to sale. Below is a practical look at how cannabis is grown, what licenses are required to move it to store shelves, how much money flows at the “grower” level, and which companies in Nevada are vertically integrated (owning cultivation and dispensaries under one holding company).

Licenses and what they allow

Nevada issues distinct cannabis establishment licenses. For cultivation, the state defines what a licensee can do quite specifically: **cultivate, harvest, and package cannabis; have it tested by an independent testing laboratory; and sell to retail stores, product manufacturers, or other cultivators—but **never directly to consumers. Distribution (transport) is its own license type.

On top of state licensing, every legal operator must use Metrc, Nevada’s seed-to-sale tracking system. That requirement has been in place since 2017 and covers all medical and adult-use inventory movements. READ MORE: metrc.com

Facility, security, and agent requirements

Nevada law requires cultivation to occur in enclosed, locked areas with 24/7 video monitoring and restricted access; on-site consumption is prohibited. The same section of law also authorizes government inspections. In practice, all employees with plant-touching roles must hold Cannabis Establishment Agent cards (with background checks).

Local governments layer additional rules (zoning, fire, building, and business licensing). For example, the City of Las Vegas reminds licensees that only a licensed distributor may transport cannabis from cultivation or production to a retail store—even when facilities share the same address. That is, cultivators cannot legally self-deliver to their own or a partner’s dispensary without a distributor license. READ MORE: files.lasvegasnevada.gov

Testing and chain-of-custody

Before any sale to a store, Nevada products must pass testing at an independent testing laboratory. All sampling, results, transfers, and any remediation steps are logged in Metrc, which serves as the canonical chain-of-custody record regulators use to reconcile taxes and inventory. (Audits have explicitly referenced Metrc data for this purpose.)

How cannabis moves: distribution & transport rules

Because distribution is distinct from cultivation, licensed distributors handle most inter-facility movement (cultivation → manufacturer or retailer). Nevada’s distributor regulations go deep on transport security: approved vehicles, two-person rules, video coverage when loading/unloading, and route controls.

Taxes that shape the grower’s economics

Nevada applies a 15% wholesale excise tax on the first sale out of cultivation, plus a 10% retail excise tax at the point of sale to adult-use customers (medical sales are exempt from the 10%). The 15% is paid by the cultivator; if the buyer is an affiliate, Nevada uses a state-set “Fair Market Value” to calculate the tax base. READ MORE: State of Nevada

In FY 2024, Nevada collected $43.74 million from the 15% wholesale excise tax and $76.80 million from the 10% retail tax, on $829.2 million in taxable retail sales. Using the 15% figure, we can infer an implied first-wholesale market value of roughly $291.6 million statewide for FY 2024 (i.e., $43.74M ÷ 0.15)—a reasonable proxy for cultivators’ gross first-sale revenue before operating costs. (Actual revenue varies by affiliate pricing and contract structure, but the tax base provides a defensible statewide estimate.)

Annual revenue for cultivators (what we can—and can’t—know)

Nevada’s public reports don’t break out private, company-level grower revenue. However, the wholesale excise tax number allows an estimate for the entire cultivation segment: about $292 million in FY 2024 first-wholesale value, as shown above. That figure is consistent with the state’s overall market size and the role wholesale plays in the value chain.

How many dispensaries can a cultivator sell to?

There is no statutory cap on the number of retailers a licensed cultivator can supply. The state defines who cultivators may sell to (retail stores, manufacturers, other cultivators) but does not limit the count of buyers. Practically, distribution breadth is governed by contracts, logistics, and brand strategy—subject to the rule that transport must be performed by a licensed distributor.

Vertical integration: Nevada operators that grow and retail

Several holding companies in Nevada operate both cultivation/production and dispensaries (vertical integration):

• Planet 13 Holdings — Operates the Planet 13 SuperStore and Medizin dispensary in Las Vegas and has expanded its Nevada cultivation footprint (approved 22,000-sq-ft expansion, with harvest underway). WEBSITE: planet13.com
• Green Thumb Industries (GTI) — Runs RISE dispensaries statewide and reports production facilities (grow/manufacturing) in Carson City and Las Vegas supporting its brands—illustrating a cultivation + retail model under one parent. READ MORE: Cannabis Business Times
• Verano Holdings — Operates Zen Leaf dispensaries and, via the Sierra Well acquisition, added an active cultivation facility (and additional stores), reinforcing a vertically integrated NV footprint. READ MORE: GlobeNewswire
• Curaleaf — Owns Curaleaf-branded dispensaries and the former Acres cultivation and processing complex (Amargosa Valley) after completing the Acres acquisitions (retail + cultivation/processing). READ MORE: ir.curaleaf.com

These examples show that, while Nevada does not require vertical integration, it permits it—and many brands choose it to control supply, pricing, and in-store assortment. (Nevada law does impose certain license number limits and ownership disclosures, but not a prohibition on holding multiple license types.)

Cultivation in practice: canopy, compliance, and price pressure

Cultivators operate under a mix of statutory rules and Nevada Cannabis Compliance Regulations (being recodified into NAC). Core themes include: locked/enclosed grow areas; detailed video surveillance; restricted access and agent credentialing; tracked sampling/testing; and explicit rules around inter-facility sales (including certain allowances for crude resin transfers and stringent distributor transport rules). The CCB’s biennial report underscores that inspections and audits are routine and that violations can trigger disciplinary complaints. READ MORE: Justia Law

On the economics side, Nevada’s market has seen price compression since its 2021 peak. Retail taxable sales totaled $829.2M in FY 2024 (down from 2022), yet the cultivation-level excise suggests a still-substantial wholesale value base. In short: wholesale dollars have tightened, but legal growers continue to move large volumes through the regulated system. READ MORE: Nevada Cannabis Compliance Board

Quick reference: who does what (legally)

• Cultivation license: Grow, harvest, package; sell only to licensed retailers, manufacturers, or cultivators; must use Metrc; cannot sell to consumers. READ MORE: Nevada Cannabis Compliance Board
• Distributor license: Transport between licensed establishments; must follow security/vehicle rules. READ MORE: Nevada Cannabis Compliance Board
• Retail store license: Sell to adult-use consumers (10% retail excise), and to medical patients (no 10% excise). READ MORE: State of Nevada
• Independent testing lab: Required gateway before products can be sold to consumers. READ MORE: Nevada Cannabis Compliance Board

Bottom line

Nevada’s cultivation sector is high-compliance and data-tracked, anchored by Metrc and strict facility/security rules. Cultivators can sell to any number of licensed retailers and manufacturers (no numeric cap), but must use licensed distributors for transport. Based on the state’s 15% wholesale excise collections, cultivators collectively generated about $292 million in first-wholesale value in FY 2024—feeding an $829 million retail market. And while vertical integration isn’t required, operators like Planet 13, GTI/RISE, Verano/Zen Leaf, and Curaleaf show how owning both grow and store can be a strategic advantage in Nevada’s evolving market. READ MORE: Nevada Cannabis Compliance Board