Update: NYC Adult Stores Dodge Bullet

NEW YORK, NY – Lawyers for adult businesses outside of recently designated adult zones have won a temporary stay of execution. The stay, delivered by the same judge who April 12 ruled in favor of a city crackdown, requires a five-judge panel to sign off on higher appeals before the city can begin padlocking the adult stores.

Jets Stadium on Manhattan’s West Side will be the biggest landmark in one of the city’s rezoned adult districts, according to the Appellate Division’s decision. The ruling would force many adult businesses to close shop and move to industrial areas on the island and outer boroughs. The stay allows some 200 adult businesses breathing room while awaiting permission to appeal.

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 40 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 ten 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 Division ruling reversed this.

Mayor Michael Bloomberg lauded the court’s decision by 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 ghettoes.”

Now that their stay has been granted, attorneys for adult businesses are banking on an argument before the state, which does not carry an automatic appeal if the case goes against them.

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

Dorcel Drops Franck Vicomte's 'Raw Sex Only'

Dorcel has released director Franck Vicomte's latest feature, "Raw Sex Only."

Orion Expands Cottelli 'Lingerie,' 'Party' Lines

Orion Wholesale has introduced three new pieces from its Cottelli Party line and one from its Lingerie collection.

Cory Chase, Isa Bella Front Latest From Bellesa Plus

Cory Chase and Isa Bella star in the latest release from Bellesa Plus, titled “Mother’s Day.”

Pervz to Debut New Limited Series 'Power Corrupts'

Pervz has announced the launch of its new six-scene limited series, "Power Corrupts."

Sandra Makes Her WIFEY Debut

Creator Sandra stars with her husband Ivan and Isiah Maxwell in the latest release from Vixen Media Group studio imprint WIFEY.

Gia Palomino Makes Adult Debut in Angelo Godshack's 'Rough Love 6'

Gia Palomino makes her adult debut and headlines Angelo Godshack’s latest Evil Angel directorial, “Rough Love 6.”

2026 XBIZ Miami Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, set to take place May 11-14 at the Goodtime Hotel in South Beach.

Court of International Trade Rejects Trump 'Replacement' Tariffs

The U.S. Court of International Trade on Thursday ruled that President Trump’s 10% global tariff under the Trade Act of 1974, imposed after the Supreme Court invalidated the administration’s broad “Liberation Day” tariff regime, is illegal — but stopped short of a nationwide injunction against the tariff.

Blush Announces Executive Appointments

Blush has announced three new executive appointments across its organization.

Bellesa Plus Wraps Shooting on New Reality Series

Bellesa Plus has wrapped production on the first episode of its new reality series, “The Bellesa Challenge.”

Show More