Texas Strip Clubs Sue Over State-Imposed Cover Charge

AUSTIN — Texas gentleman’s club owners are attempting to block a new state-imposed $5 cover charge that is slated to go into effect Jan. 1, reportedly raising an estimated $40 million annually.

The cover charge is intended by officials to offset rising health care expenses for uninsured residents, regardless of their citizenship status, and to finance sexual assault prevention programs.

Club owners have filed a suit claiming that the surcharge violates their constitutionally protected free speech rights, creates the impression that their patrons are prone to rape and thus are required to fund programs that address the crime and that this is nothing more than a discriminatory tax meant to hurt their businesses.

The bill's backers claim that they are merely trying to raise money for under-funded programs and not trying to imply that consumers of adult entertainment commit sex crimes, and that they are not trying to hurt legitimate business operations.

"Clearly we're disappointed by the lawsuit; we were really hoping this industry would see this as an opportunity to do something positive for the communities they're in," said Annette Burrhus-Clay, executive director of the Texas Association Against Sexual Assault. "We're going to fight it because we believe in the merits of our position."

The club owners' suit, filed against Texas Attorney General Greg Abbott and Comptroller Susan Combs, states in part: “Exotic nude dancing is protected speech under the 1st Amendment," and claims that the surcharge "singles out income derived from protected speech for a burden the state places on no other income."

Gov. Rick Perry backed similar legislation in 2004, when a surcharge on clubs was sought to raise money for the state’s school system but was defeated in session.

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

Full Circle Expands 'Pleasure Company' Vibe Collection

Full Circle has added six new vibrators to its Pleasure Company line.

Fleshlight, Penthouse Partner for New 'Pet' Collection

Fleshlight has partnered with Penthouse to release a collection of strokers based on the anatomy of 12 Penthouse Pets.

Svakom, Kaotik Labs Return as Presenting Sponsor of XBIZ Awards, Pleasure and Retail Edition

The pleasure industry’s biggest night is set to shine even brighter as Svakom and sister brand Kaotik Labs return as presenting sponsors of the 2027 XBIZ Awards, Pleasure & Retail Edition, taking place at Avalon Hollywood on Jan. 9.

Electric Novelties Debuts 20 New 'Blue Line' Chastity Styles

Electric Novelties has introduced 20 new Blue Line chastity styles.

Sportsheets Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of adult brand Sportsheets in a case against a copycat website using an infringing domain.

Sex Expo 2027 Unveils Guest Speaker Lineup

The Sex Expo 2027 schedule is now live, featuring two days of educational sessions, interactive workshops and expert-led conversations at the JW Marriott L.A. LIVE, Jan. 7-10.

Lovense Introduces Touch-Responsive 'Glint' Vibrating Anal Plug

Lovense has debuted its new Glint vibrating anal plug for couples, featuring a touch-responsive base that syncs the device's stimulation with the rhythm and thrust of the wearer's partner.

Kink.com Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Kink.com in a case against a copycat website using an infringing domain.

Arcom Investigates MYM Over SREN Compliance

French media regulator Arcom is investigating creator platform MYM to determine whether the site may have violated age assurance rules and/or other requirements of France’s Security and Regulation of the Digital Space (SREN) law.

Orion Debuts New Vibe From 'Javida' Line

Orion Wholesale has introduced the newest vibrator from its Javida collection.

Show More