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

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

LELO Debuts 'Surfer 2' Anal Plug

LELO has introduced its new Surfer 2 anal plug.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Aleksa Mink Fronts Latest From Reality Kings

Aleksa Mink stars with Dick Dealer Don in the latest release from Reality Kings.

Angie Lynx Toplines Angelo Godshack's 'Hardcore Gangbangs 6'

Angie Lynx headlines the sixth volume of director Angelo Godshack's "Hardcore Gangbangs," from Evil Angel.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

Our Erotic Journey Expands 'Cristal Collection' of Vibrators

Our Erotic Journey has introduced five new vibrators from its Cristal Collection.

Nice & Naughty Names Chris Fleiger Director of Operations

Michigan-based retail chain Nice & Naughty has appointed Chris Fleiger as its new director of operations.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

XBIZ Retreat to Make Its Cabo Comeback Aug. 17-21

XBIZ Retreat will return to Cabo San Lucas Aug. 17–21, bringing together top LATAM retail buyers and pleasure product brands for a week of dealmaking and networking.

Show More