N.Y. Court Gives a Merry X-mas to Adult Businesses

ALBANY, N.Y. — Adult entertainment companies have been given another chance to fight a New York City law that keeps them out of most neighborhoods.

Thursday’s New York Court of Appeals decision effectively blocks the city’s bid to close or move more than 100 strip clubs, adult movie theaters and video stores.

Several venues that include adult cabarets and retailers that sell adult material sued the city over a 2001 amendment to a 1995 zoning law that banned all adult entertainment activity from neighborhoods outside certain industrial areas. Plaintiffs claimed their free speech rights were violated.

The businesses operated under the “60/40” rule, which provided that a business could not be called an adult establishment if less than 40 percent of its floor space or inventory was devoted to adult content.

But the Court of Appeals ruled, 4-3, to send the case back to a lower court, deciding that the city needs to show that the so-called “60/40” businesses still display a “predominant, ongoing focus on sexually explicit materials or activities" to justify strengthening the 1995 ordinance.

If not, Judge Susan Phillips Read said, “plaintiffs will prevail” at trial.

In 2001, Mayor Rudolph Giuliani proposed an amendment to the law to curb what he saw as a loophole allowing sex shops to continue operating in zones where they should have been excluded. The shops did this, the Giuliani administration argued, by rearranging their floor space and stocking a token amount of nonpornographic items to avoid being tagged as a sex store.

In the case, New York City argued that an amendment to a 1995 law simply closed a loophole and did not create a new law.

New York officials also contended that the amendment would help mitigate secondary effects they claimed the businesses had on their neighborhoods, such as lower property values, increased amounts of trash and higher crime rates.

The businesses sued and won their case in Supreme Court. That ruling was later overturned by an appellate court.

Attorney Martin Mehler, representing the Pussycat Lounge — a rock club that also includes an adjacent adult cabaret — said the decision bodes well for his client and the other plaintiffs.

"Since the law went into effect, we've adhered to the mandates of the city," he said. "There is no more crime near our place, no trash, no lowering of property values. Nothing has happened to mandate the city's actions. They have to come up with more than they have come up with" to justify the 2001 amendment.”

The consolidated case is Peoples Theatres of N.Y. vs. City of New York and Ten’s Cabaret vs. City of New York, No. 181.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Blush Debuts 'M for Men' Male Sleeve Warmer

Blush has introduced its new M for Men sleeve warmer for male masturbators and strokers.

Orion Debuts 3 New Styles From 'Cottelli Party' Line

Orion Wholesale has expanded its Cottelli Party line with three new styles.

FSC Publishes Guidance on New UK Pornography Laws

The Free Speech Coalition (FSC) has published information for its members on the United Kingdom's recently passed pornography laws, which take effect next week.

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Nalpac Releases 2026 Winter Catalog

Nalpac has released its 84-page 2026 winter catalog.

2027 XBIZ Exec Awards Nominees Announced for Pleasure Product and Retail Edition

XBIZ is pleased to announce the exec nominees for the pleasure product and retail industry edition of the 2027 XBIZ Awards, presented by Svakom and sister brand Kaotik Labs, set to take place on Saturday, Jan. 9, in conjunction with the XBIZ 2027 event series.

Arcom Issues Warnings to 3 Adult Sites Over Age Verification

French media regulator Arcom has issued formal notices to the operators of three adult websites that the agency says have failed to implement age verification as required under French law.

Full Circle Expands 'Pleasure Company' Vibe Collection

Full Circle has added six new vibrators to its Pleasure Company line.

Fleshlight, Penthouse Partner for New 'Pet' Collection

Fleshlight has partnered with Penthouse to release a collection of strokers based on the anatomy of 12 Penthouse Pets.

Svakom, Kaotik Labs Return as Presenting Sponsor of XBIZ Awards, Pleasure and Retail Edition

The pleasure industry’s biggest night is set to shine even brighter as Svakom and sister brand Kaotik Labs return as presenting sponsors of the 2027 XBIZ Awards, Pleasure & Retail Edition, taking place at Avalon Hollywood on Jan. 9.

Show More