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

Calita Fire Toplines 'Swingers Resort' From Private

Calita First headlines the latest release from Private, titled “Swingers Resort.”

Octavia Red, Vince Karter Star in Latest From Elegant Angel

Recent XMA winners Octavia Red and Vince Karter star in the latest release from Elegant Angel, titled "Octavia Red Demure in Paris."

Kheper Releases New 'Reverse Adult Charades' Party Game

Kheper Games has released the new "Reverse Adult Charades" party game.

Nalpac/Entrenue, Jen Jenivive Sign US Distro Deal

Nalpac/Entrenue and U.K.-based author Jen Jenivive have signed an exclusive U.S. distribution deal for Jenivive’s books.

Male Power Debuts 'Open Ended' Collection

Male Power has introduced its new Open Ended collection of men's underwear.

Ricky Johnson on Building His Enterprise One Sleepless Night at a Time

Ricky Johnson is always in motion. Even as he takes time out of his busy shooting schedule to chat with XBIZ, there’s restless energy behind the calm. This makes it easy to envision a younger version of Johnson, back when he arrived on the adult scene with no connections — but a great deal of persistence.

Ameena Green on Delayed Gratification and Finding her 'Synthesis' Moment

In an industry that sometimes moves at breakneck speed, Ameena Green is taking it slow.

Utah 'Porn Tax' Bill With VPN Provisions Passes State Senate

The Utah state Senate has passed a bill that would impose a 2% tax on the revenues of adult websites doing business in that state, and make sites liable if Utah minors use VPNs to circumvent geolocation.

FreeUse to Drop New Limited Series 'The Seed Act'

FreeUse will premiere a three-part limited series on Thursday, titled “The Seed Act.”

Magic Silk Debuts 'Euro Lux' Collection

Magic Silk has introduced its new Euro Lux line of lingerie.

Show More