By: Andy Powell, Senior Editor | JRL CHARTS – Adult Industry News
WASHINGTON, D.C. — (January 20, 2026) — The U.S. Supreme Court has declined to hear an appeal from a coalition of adult businesses challenging New York City’s long-contested adult-use zoning law, effectively clearing the final legal hurdle for the city to begin enforcing restrictions that could dramatically reshape the adult retail landscape.
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As JRL CHARTS previously reported, the petition stemmed from a prolonged legal battle after the U.S. Court of Appeals for the Second Circuit repeatedly ruled in favor of New York City, granting municipal officials authority to enforce a controversial 2001 zoning amendment targeting adult-oriented businesses.
A Three-Decade Legal Fight Comes to an End
The dispute traces back more than 30 years to New York City’s original zoning ordinance, enacted during the aggressive redevelopment of Times Square and surrounding neighborhoods. That law restricted adult entertainment businesses from operating in most commercial areas, defining such establishments as those in which 40% or more of floor space or inventory involved sexually explicit material.
City officials later argued that the so-called 40/60 rule was easily circumvented. In response, a 2001 amendment abandoned the percentage threshold altogether and instead targeted any business that “primarily markets” adult content—broadening enforcement to include adult bookstores, video retailers, and strip clubs regardless of how merchandise or floor space was allocated.
Adult businesses quickly challenged the revised law, arguing that it violated constitutional protections related to free speech and equal protection. Those challenges effectively stalled enforcement for more than two decades.
Courts Side With the City
In 2024, a federal district court ruled that New York City was within its rights to enforce the amendment, even against businesses that had previously complied with the older 60/40 framework. The ruling opened the door for forced relocation to a small number of permitted zones—or potential exit from the city altogether.
The Supreme Court’s decision not to take up the appeal marks the final procedural step in the case, leaving adult retailers with no remaining federal legal remedies.
Attorneys representing the petitioners acknowledged the significance of the Court’s refusal, noting that while the constitutional questions were substantial, the Court accepts only a fraction of the thousands of cases submitted each year.
What Happens Next for Adult Retailers?
How aggressively New York City will enforce the law—and how quickly—remains unclear. However, industry observers warn that the zoning framework presents serious logistical challenges.
Even in districts where adult businesses are technically permitted, additional regulations impose strict buffer zones from schools, residential properties, houses of worship, and other adult establishments. Taken together, these overlapping requirements could leave few, if any, viable relocation options for existing stores.
For adult retailers, distributors, and landlords operating in or near New York City, the ruling represents a major inflection point—one that could accelerate store closures, force consolidation, or push businesses toward e-commerce-only models.
JRL CHARTS will continue to track the legal, regulatory, and economic impact of zoning enforcement on adult retailers and the broader adult industry nationwide.
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