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Denver's Tetra Lounge Faces Licensing Challenges
Denver's Tetra Lounge is under the microscope, with its cannabis hospitality license at risk of revocation due to multiple allegations of law violations. The Denver Department of Excise and Licenses has issued an "order to show cause" to the lounge, following claims of unauthorized advertising of psychedelics, selling and distributing cannabis products on-site, and operating without a proper Certificate of Occupancy allowing patron access [1][2][3].
The city of Denver accuses Tetra Lounge of advertising banned substances such as psilocybin and DMT in April 2025, allowing consumption of cannabis on the premises without a valid Certificate of Occupancy, and selling and giving out cannabis products despite a license that permits only consumption of patron-brought cannabis on outdoor patios [2][3].
Tetra Lounge's owner, Dewayne Benjamin, denies these allegations, providing surveillance footage to dispute claims of illicit sales, and stating that the business operates as a private club where patrons bring their own cannabis [2][3].
The ongoing scrutiny around Tetra Lounge has also been heightened by a separate incident, where a Denver Department of Excise and Licenses inspector was terminated after allegedly consuming psilocybin during an inspection at Tetra Lounge's vendor market on April 20, 2025 [2][3]. This incident is separate from the license violations but adds to the ongoing scrutiny around the venue.
Despite the allegations, Tetra Lounge is allowed to remain open during the ongoing administrative process, and the license's final status will be determined during a hearing scheduled for October 10, 2025. It is worth noting that about 90 percent of such show-cause cases settle, focusing on compliance rather than outright revocation [1][2].
The specific laws violated by Tetra Lounge have still not been specified in the update, and the nature of the events held at the lounge remains unclear. The update does not provide information about the consequences the lounge may face if it loses its license.
References:
[1] Denver Post. (2025, Aug. 8). Tetra Lounge's cannabis license under threat of revocation. Retrieved from https://www.denverpost.com/2025/08/08/tetra-lounge-cannabis-license-revocation/
[2] Westword. (2025, Aug. 10). Tetra Lounge Faces Potential License Revocation Over Alleged Violations. Retrieved from https://www.westword.com/marijuana/tetra-lounge-faces-potential-license-revocation-over-alleged-violations-14515244
[3] 9News. (2025, Aug. 11). Tetra Lounge's cannabis hospitality license under threat of revocation. Retrieved from https://www.9news.com/article/news/local/tetra-lounge-cannabis-license-revocation/518-7e545f29-82f7-474f-8964-d780064e8467
- The ongoing legal issues for Denver's Tetra Lounge extend beyond the allegations of unauthorized advertising of psychedelics and selling cannabis products on-site, as there are also questions around the lounge's compliance with finance and business laws within the cannabis industry.
- If Tetra Lounge fails to address the law violations and comply with the city's regulations, it may face consequences that potentially include revocation of its cannabis hospitality license, posing a significant threat to the future of its business operations.
- As the cannabis industry continues to evolve and mature, establishing clear laws and guidelines is essential for striking a balance between allowing for a thriving economy and promoting a safe and responsible lifestyle within the sector.
