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

Kheper Releases New 'Sex Tower' Couples Game

Kheper Games has released its new Sex Tower couples game.

Mylo Unveils New 3-in-1 Massager

Pleasure brand Mylo has debuted its three-in-one massage wand.

Orion Expands 'Bad Kitty' Line

Orion Wholesale has added two sex swings to its Bad Kitty collection of fetish accessories.

Wellness Brand Mila Raises $2.5M in Pre-Seed Funding Round

New sexual wellness brand Mila has raised $2.5 million in pre-seed funding.

Our Erotic Journey to Debut New App, Pleasure Products at ANME

Our Erotic Journey will introduce its new OEJ Remote App as well as six compatible new devices at ANME trade show in Burbank next month.

Blush Debuts 'Twin Python' From 'Temptasia' Line

Blush has introduced the Twin Python from the Serpent Collection of its Temptasia line.

Sportsheets Names Donavon Dartez General Manager

Sportsheets has appointed Donavon Dartez as its new general manager.

Federal AV Proposal Passes House, Faces Senate Opposition

The U.S. House of Representatives on Monday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law, but the bill still faces tough going in the Senate.

AV Bulletin: Midyear Roundup

Since the U.S. Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. Meanwhile, lawsuits resulting from AV laws have begun to play out in the courts. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Show More