Big Apple Closes Adult Business Loophole

NEW YORK — Jets Stadium on Manhattan’s West Side will be the biggest landmark in one of the city’s rezoned adult districts, an appellate court said.

The ruling forces many adult businesses to close shop and move to industrial areas on the island and outer boroughs.

Owners of adult businesses have been squeezed by the city since 1995, when the so-called “60-40 rule” mandated that businesses devoting more than 60 percent of their floor space to adult materials would have to close or move to designated zones.

One store, Bailey’s near Times Square, famously responded by stocking Disney’s “The Lion King” in six out of every 10 feet of the store, filling the remaining space with adult videos and novelties.

When the Giuliani administration moved to close the loophole in 2001, a consortium of adult businesses took the case to the state Supreme Court, which called the city’s actions unconstitutional. The appellate court reversed this.

Mayor Michael Bloomberg, running for reelection, is proposing a $1.7 billion stadium for the Jets, and the city is competing with Paris to host the 2012 Olympics.

Bloomberg lauded the court’s decision, saying, “New Yorkers won't have to push their strollers past porn shops, have topless bars for neighbors or have to worry about peep booths in the back of their corner magazine store."

But detractors say the city will lose millions in tax revenues if all businesses on the wrong side of the 60-40 rule are forced into “adult ghettos.”

"Businessmen don't go out of their way to see dressed women dance," said Mark Alonso, a lawyer for Ten’s Cabaret on E. 21st Street near midtown Manhattan. The Cabaret would have to move several blocks west to the banks of the Hudson to be in accordance with the new rule.

Adult business proprietors can still sue in the state Supreme Court, but without an automatic appeal if the decision goes against them. In the meantime they are seeking a temporary injunction so the city does not close their businesses at their present locations.

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

FTC Warns PayPal, Stripe, Visa, Mastercard Against Debanking

Federal Trade Commission Chairman Andrew Ferguson sent letters on Thursday to the CEOs of PayPal, Stripe, Visa and Mastercard, warning them against debanking practices — including denying access to services due to a customer’s lawful business activities.

Brooke Tilli Makes Her Brazzers Debut

Brooke Tilli has made her Brazzers debut alongside studio exclusive Girthmasterr in "Who's In Charge Here!?"

JO Debuts 'Vitalize' Skincare Line

JO has introduced its new Vitalize collection of skincare products.

EU Cites 4 Adult Sites for AV Breaches

The European Commission has preliminarily found PornHub, Stripchat, XNXX and XVideos to be in breach of Digital Services Act provisions intended to shield minors from adult content.

'Group C' CEO Helena Catoir Meets With Pierre Woodman for 'Woodman Casting X' Game

Board game company Group C CEO Helena Catoir has met with casting director Pierre Woodman to discuss the new industry-themed release, “Woodman Casting X — The Game.”

Blush Debuts 'Candice' From 'EnLust' Stroker Collection

Blush has introduced the new Candice stroker sleeve from its EnLust line.

Alison Rey, Alexis Malone Lead Latest From Swappz

Alison Rey and Alexis Malone star in the latest release from Swappz's "MomSwap" series, titled “Four-Way 69 — The Hunting Moms.”

ProDx Health Joins SextPanther as New Testing Partner

ProDx Health has joined SextPanther as its new testing partner.

Honey Play Box Introduces 'Vibrosa Mini' Egg Vibe

Honey Play Box has debuted its new Vibrosa Mini app-controlled egg vibrator.

Blush Introduces 'Temptasia Ardor' Collection of Bondage Accessories

Blush has debuted its Temptasia Ardor collection of bondage accessories at the Altitude Intimates Show in Las Vegas.

Show More