Fla. Strip Bar Lawsuit Going to Mediation

DESTIN, Fla. — The ongoing dispute between the city of Destin and the Oasis pool hall about nude dancing is going to arbitration by court order.

Terry Stephenson, who leases the Oasis, filed suit in federal court last November after Destin turned down his request for a business license to provide nude dancing. Destin City Manager Greg Kisela told reporters that the court has ordered the two sides into mediation, which is expected in late June.

Nude and topless dancing were completely banned in Destin and adult entertainment was restricted to the city's industrial zoned areas. Facing fears of constitutional challenges, the city passed a new ordinance in January regulating strip clubs and other "sexually oriented businesses" such as adult video stores, adult bookstores and "sexual device shops."

The ordinance requires the owner and staff of sexually oriented businesses to take out city licenses; prohibits nudity; allows semi-nudity if performers are at least six feet from the customers; bans alcohol from the premises; and limits the hours from 10 a.m. to 1 a.m.

In February, Stephenson's attorney, Greg Edinger, filed an injunction against the new ordinance, charging that it violated the 1st Amendment and that the city's legal advertising for the hearings didn't follow Florida law. Although the city disagreed, it repeated the ordinance approval process with new legal ads and revised definitions.

Even without the ordinance, the Oasis is not legally zoned to offer nude dancing, and Stephenson's lawsuit challenges that position too.

In court filings, the Oasis' attorneys admitted the club already has occasional nude dancing, which could lead to a citation if the dancers were caught in the act.

Code Enforcement Director David Bazylak said that officers and sheriff's deputies have been visiting the Oasis several times a week but "the times Code Enforcement has been in there, we have not seen them doing that."

Kisela said that even though the city has to meet with Stephenson and his attorneys, it won't change its position. "We'll listen [but] we're still committed to the regulatory ordinance. We're not deviating from that at all."

Edinger said Stephenson's position that the denial of a business license unfairly infringes on his rights has not changed either, but "I'm always optimistic going into mediation. I've settled most of these cases."

Related:  

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

XBIZ Expo Wraps With Final Day of Networking and Sales

The 2026 edition of XBIZ Expo wrapped up on Sunday afternoon on the mezzanine level of the Loews Hollywood Hotel, where prominent buyers and sellers celebrated a raft of new deals and promising connections.

XR Brands Taps Josh Ortiz for Director of Education and Outreach

XR Brands has promoted sex educator Josh Ortiz to director of education and outreach.

XBIZ Expo Day 2: Education, Dialogue, Community

Day 2 of XBIZ Expo continued the event’s focus on education, collaboration and industry insights, with a packed schedule that balanced business-driven discussions with innumerable opportunities to network.

Pjur Rolls Out 2026 Marketing Campaign

Pjur has launched its multi-phase, integrated marketing campaign for 2026.

FirmTech Expands Global Distribution

FirmTech has expanded its global distribution across the U.K., Europe, and Asia.

XBIZ Expo Kicks Off With Buzz-Filled Show Floor

The 2026 edition of XBIZ Expo officially kicked off Friday morning on the mezzanine level of the Loews Hollywood Hotel, where prominent buyers and sellers mingled in the hopes of closing deals.

Paradise Debuts 'Illumination' Line

Paradise Pleasure Products has introduced its new Illumination collection of pleasure products.

Orion Debuts New Styles From 'Svenjoyment' Line

Orion Wholesale has released four new styles from its Svenjoyment undergarment line.

Viben Acquires Get Lucky, Mini Halo Brands

Viben has acquired the Get Lucky and Mini Halo pleasure product brands.

Paul Reutershan Joins National Sales Team

Paul Reutershan has joined the sales team at National Distribution.

Show More