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Virginia regulators on Tuesday denied a request to move a medical cannabis facility approved for the city of Bristol, choosing to leave the dispensary in the same building as a proposed casino resort.

Dharma Pharmaceuticals, a company that received a conditional license to open a CBD and THC-A oil dispensary in Southwest Virginia, had asked the Virginia Board of Pharmacy to approve a new location in order to separate the two projects.

The dispensary and the casino emerged as future tenants of the former Bristol Mall, which closed in 2017. The state has already approved the mall building as a dispensary location, but the casino will only happen if the General Assembly and Bristol voters approve it next year.

To avoid having a medical cannabis dispensary next to a gambling and entertainment venue, Dharma proposed moving its facility to an undisclosed location on Bristol’s Commonwealth Avenue.

The pharmacy board approved the mall location in September, giving Dharma one of five state licenses out of a field of 51 applicants. The dispensaries will be limited to cannabis-derived oils when they open next year, but the licenses could become more lucrative if Virginia continues to relax its laws on medical marijuana.