A decades-old battle over New York City’s adult zoning laws is reaching a critical point as an appeals court considers whether to enforce a long-contested 2001 amendment aimed at forcing adult businesses (such as adult bookstores and video stores) out of most parts of the city.

In 1995, New York City restricted the location of adult businesses, barring them from most of midtown Manhattan and requiring them to be at least 500 feet away from schools, residential areas, and houses of worship.

If upheld, the law could shut down or displace strip clubs, adult bookstores, and video stores across New York, marking one of the most aggressive crackdowns on adult entertainment in the city’s history.

The original law defined “adult establishments” as businesses where at least 40% of their stock or space contained adult content.

In 2001, the city passed an amendment that eliminated the 40% rule and instead targeted any business that “primarily” markets adult entertainment.

The 2001 amendment has been involved in litigation for more than two decades, preventing its enforcement—until now.

City attorneys argue that the 40% rule was too easy for businesses to circumvent, allowing adult establishments to artificially reduce their “adult” content while still primarily operating as adult venues.

During oral arguments at the Second Circuit Court of Appeals, Judge Steven Menashi (a Trump appointee) defended the city’s position:

“The city has said that the 60/40 rule was easily circumvented. You know, a strip club that has a billiard room upstairs is still really a strip club.”

The city claims that adult businesses negatively impact surrounding neighborhoods, citing studies from the 1990s that linked adult venues to crime and decreased property values.

The adult businesses challenging the law argue that the city’s reasoning is outdated and doesn’t reflect the modern adult industry.

Attorney Edward Rudofsky, representing several NYC strip clubs, argued:

“There’s no basis for the city’s claims that adult businesses have the same impact as they did 30 years ago.”

Attorney Erica Dubno, representing adult bookstores and video stores, said:

“The internet has transformed adult content, and these businesses are not causing the issues that the city is claiming.”

The plaintiffs contend that the city is selectively enforcing zoning laws against adult businesses, violating First Amendment protections and equal treatment rights.

If the Second Circuit upholds the 2001 amendment, adult businesses across New York City would face:

✔ Forced relocation or closure – Many would have nowhere to legally operate under strict zoning laws.
✔ Severe financial losses – Moving locations, if even possible, would be a costly burden.
✔ An end to legal adult bookstores and video stores – Already dwindling due to online content, this could be the final blow for physical adult retail in NYC.

Judges Menashi, Myrna Pérez, and Alison Nathan have not yet issued a ruling. If the Second Circuit upholds the lower court’s 2024 decision, the city could begin enforcing the 2001 law—more than 20 years after it was passed.