Vegas Gentlemen’s Clubs Dole Out $40M Annually to Taxi Drivers, Suit Says

LAS VEGAS -- A federal suit filed Tuesday is certain to put the city’s strip clubs and taxi and limo businesses under the microscope.

Drivers from more than two dozen cab and limo companies have been listed as defendants after Calfornia resident Theodore Trapp said that many of the area’s strip clubs pay drivers as much as $100 per person to bring people to their venues.

Those clubs named in the suit include Cheetah’s, the Badda Bing Men's Club, the Can Can Room, Club Paradise, Deja Vu Showgirls, The Palomino Club, Sapphire, Spearmint Rhino, Treasures, Little Darlings, Olympic Gardens and Larry Flynt's Hustler Club.

Trapp said in the suit filed at U.S. District Court in Las Vegas that some drivers make as much as $100,000 a week. He also goes on to claim that the total damage to strip-club consumers amounted to $40 million in kickbacks last year.

The long-standing practice of clubs paying drivers to bring in customers echoes a similar suit filed in Clark County Court last October. The practice is illegal under two separate Nevada statutes.

Trapp, who claimed he was on his way to burlesque club Play It Again Sam, said in the suit that his own taxi driver discouraged him from going to that destination and "misled [him] into believe that his chosen destination was somehow undesirable," telling him, "'There are better clubs' ... 'The girls are better at other clubs.’”

"The illegal scheme is negatively impacting the city of Las Vegas and the state of Nevada," the suit said. “The harm to customers [doesn’t] end when a customer exit’s a given cab.”

Trapp claims the clubs recoup the money spent on kickbacks by watering liquor, selling cheap booze as brand name, padding customers' bills, and "threats of actual physical harm" to customers.

“[T]he aggregate of this practice fosters an environment that discourages people from returning to Las Vegas as these individuals have unwittingly become ensnared in an illegal scheme and are unable to travel freely via common carrier,” the suit said.

Trapp noted in the suit a local TV news investigation that uncovered the practice. He also said that a book, “Stripped: Twenty Years of Secrets From Inside the Strip Club,” provides a full insider’s view of the scheme.

“The author worried that the only way this extortion practice would end will be with one wrecked cab, a pile of half-a-dozen dead tourists and Las Vegas on the national media hot seat for our irresponsible behavior,” the suit said.

In October, two Las Vegas strip clubs filed suit against 12 competing clubs and their employees, alleging that the clubs and their employees bribed taxi drivers to take passengers to 12 clubs instead of the two that filed the suit.

Deja Vu Showgirls and Little Darlings of Las Vegas filed that suit in Clark County, claiming that taxi drivers would disparage Deja Vu and Little Darlings with comments like, "It's a dump," and descriptions of the dancers as "old hogs" and "chicks with bullet wounds," taking passengers to the defendant clubs in exchange for tips and kickbacks from club employees.

Tuesday's suit, which seeks class-action status, asks for an injunction to the practice, as well as punitive awards.

XBIZ could not immediately reach Trapp's attorney, James Smyth II, Wednesday evening for comment.

Related:  

Copyright © 2025 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

Michigan Legislators Propose Online Porn Ban

Michigan lawmakers have introduced a bill that would make it illegal to distribute pornography via the internet in the state.

Florida AG Sues Aylo, Segpay Over State AV Law

Florida Attorney General James Uthmeier filed lawsuits against Aylo and Segpay on Monday with the 12th Judicial Circuit Court of Florida for noncompliance with HB3, the state's age verification law.

Colombian Court Sides with Performer Esperanza Goméz Over IG Suspensions

Colombia’s Constitutional Court last week ruled in favor of adult performer Esperanza Gómez in her legal battle against Meta over repeated suspensions of her Instagram account.

Missouri AG Announces Age Verification Rule to Take Effect Nov. 30

Newly appointed Missouri Attorney General Catherine Hanaway announced Friday that the state's recently approved age verification regulation for adult websites will go into effect on Nov. 30.

Aylo, Woodhull Freedom Foundation to Tackle Online Censorship in Virtual Seminar

Aylo and Woodhull Freedom Foundation will co-host a virtual panel addressing online censorship on Sept. 30.

Judge Awards Plaintiffs Over $400K in Attorneys Fees in Derek Hay Civil Case

California Superior Court Judge Gail Killefer has awarded former clients of LA Direct Models over $400,000 in attorneys fees and court costs, to be paid by agency founder Derek Hay.

Former Backpage CEO Carl Ferrer Sentenced to 3 Years Probation, $40,000 Fine

Former Backpage.com CEO Carl Ferrer was sentenced in federal court today to three years' probation and a $40,000 restitution fine for a conspiracy conviction related to money laundering through the defunct website.

Playboy Wins $81 Million Judgment in Chinese Licensing Arbitration

Playboy Inc. was awarded $81 million in damages on Monday by the Hong Kong International Arbitration Centre, in a licensing dispute with former partner New Handong Investment (Guangdong) Co. Ltd.

GirlsDoPorn Owner Michael Pratt Sentenced to 27 Years

Michael Pratt, former owner of the website GirlsDoPorn, has been sentenced to 27 years in federal prison.

Aylo Fined $5 Million as FTC, Utah Settle Safety Practices Complaint

The Federal Trade Commission and the state of Utah on Wednesday settled a complaint against Aylo, requiring the company to pay a $5 million penalty and implement measures to prevent illegal content from appearing on its sites.

Show More