Stronger, smarter and more united than ever.
(Note: This article was written by Joey Bien and appears in the September 2026 issue of ED Magazine.)
Each year, as ACE National is given the opportunity to address the industry through ED Magazine, I am reminded of a simple truth: this industry does not survive by accident. It survives because club owners, operators, executives, workers, attorneys, vendors, trainers and advocates continue to show up. It survives because we refuse to allow others to define us without facts or fairness. This past year proved it again.
Across the country, legally operating adult clubs continued to face challenges: proposed age restrictions, licensing burdens, zoning attacks, sweeping harmful narratives, banking pressure, pole tax or fee proposals and legislation often introduced under broad political slogans that do not reflect the reality inside responsible, law-abiding clubs. None of this is new, but what is happening is our growing ability to respond quickly, intelligently and collectively. Standing up for yourself and your business is the real state of our union: challenged, yes, but increasingly organized, informed and effective.
Advocacy works when you show up
One of the most important lessons of the past year is that direct advocacy works. In Oklahoma, proposed legislation that would have imposed new burdens on entertainers and sexually oriented businesses drew serious concern from industry members, workers, advocates and owners.
Rather than sit back and hope for the best, people showed up to communicate what their work and clubs mean to them. They explained practical consequences of suddenly disenfranchising workers and offered solutions. They told lawmakers what these fees or age ban bills meant for workers, clubs and responsible operations. They made clear that policy written without the voices of the affected creates more harm than protection.
In Louisiana, and particularly in New Orleans, industry voices also helped push back against proposed restrictions that would have affected the businesses and workers connected to them. These fights are rarely easy. They require time, patience, courage and a willingness to enter rooms where assumptions are already made. But this year, advocates demonstrated that when lawmakers hear from real people who work in the industry instead of relying on stereotypes or outdated studies, outcomes can change.
“Challenging economic cycles expose weakness, but they also reveal leadership.”
— Joey Bien
Atlantic Beach was interesting too. Seems a police chief was told by a city administrator to “make up” negative secondary effects against a club that had existed peacefully for years. When he refused, he was terminated and decided to act as a witness for the adult club. The case is ongoing, but an injunction was granted to stay a new city ordinance because one of the city council members was deemed ineligible to serve when the ordinance was voted on.
Silence, too, is sometimes a good strategy. But we’re discovering that speaking clearly and truthfully about facts, testimony, relationships and preparation sometimes stops bad policy before it becomes bad law. For every club owner who says, “I’m too busy to get involved,” or “I’ll let the big clubs handle it,” you should reconsider. The people trying to regulate this industry out of existence are not too busy. And their budgets, I’m told, are about $30 million per year.
Legislative tracking is not optional
If your state introduces a sexually oriented business fee of $10/patron, do you want to know as soon as this type of legislation is introduced? Or would you rather wait until the bill passes and just pay the fee? ACE National monitors legislation across the country because early detection is one of the strongest tools this industry has.
The moment a bill is filed, it shapes media coverage, public perception, copycat proposals, investor confidence, landlord concerns, banking relationships and enforcement attitudes. Legislative tracking is more than a member service. It is an early warning system.
Most bills move through committees before the public is paying attention. Some die quietly. Some are amended. A few get killed, and a couple are revived late in session. Bills might appear harmless until phrases are added or words are changed. By tracking these proposed laws, ACE National helps members, lobbyists and attorneys understand what is coming and prepare a response before any damage is done.
In the past year, ACE National has monitored dozens of bills affecting the legally operating adult club community. Some involved age restrictions. Others involved zoning, signage, employment, licensing, taxation, sex trafficking narratives, public safety, banking or independent contractor issues. The point is to understand patterns, anticipate threats and help the industry respond with professionalism, strategy and education instead of anger or panic.
The hospitality climate is changing
The adult nightclub industry has become cautious and more competitive. Adult clubs, like other hospitality venues, are dealing with cost-conscious consumers, higher operating costs, labor pressures, insurance and customers who are terrified of being fleeced when they walk through your door.
The National Restaurant Association’s 2026 industry outlook points to modest sales growth and continued cost pressures, while its consumer research shows that many customers still value entertainment but are seriously watching their spending. National industry analysts have also noted that while consumer spending remains resilient in some sectors, operators face fierce resistance to price increases. In other words, the adult club business isn’t alone in feeling slower traffic or softer discretionary spending. This is part of a larger hospitality and nightlife cycle.
Across the country, stronger clubs adapt. They are improving customer service, tightening security, investing in cleanliness, refreshing food and beverage programs, creating theme nights (which can increase business by 25%), using social media more strategically, building VIP relationships, reviewing pricing, improving staff communication, thoroughly training managers and making the customer experience feel more intentional from the moment a patron walks through the door.
Some clubs also lean into what hospitality trends show: customers still want experiences, connection, safety, convenience, professionalism, novelty and value. This is a real opportunity for ACE members. A well-run adult club is more than a building with a stage and scantily clad women. It’s a hospitality business that is part of a community. Clubs that understand this are using slower periods to sharpen operations and cut costs.
Slower business forces every club operator to ask better questions too, like: Is the club welcoming? Is the staff trained? Is security visible without being intimidating? Are entertainers treated professionally? Are customers and dancers made to feel important? Are events promoted early enough? Is the website current? Are VIP customers being followed up with? Is the club clean, safe and memorable?
Club operators who answer those questions honestly are better positioned because challenging economic cycles expose weakness, but they also reveal leadership.
Debanking: A major step forward
For years, legally operating adult businesses have reported being treated as if lawful commerce is somehow less worthy of fair access to banking. Many adult clubs have faced sudden account closures, payment processing problems, lender hesitation and vague explanations tied to perceived reputation risk.
This year brought meaningful progress as federal banking regulators took steps to eliminate “reputation risk” from supervisory programs and prevent regulators from criticizing or taking adverse action against financial institutions based on that standard. While this does not solve every banking problem overnight, adult entertainment was singled out as a targeted industry. The shift signals that lawful businesses should not be quietly pushed out of the financial system because they are politically unpopular or socially misunderstood.
“When experienced leaders help the next generation understand what responsible operation requires, the entire industry becomes stronger.”
— Joey Bien
Debanking is a terrorist-like threat to lawful commerce. If you’re still facing bank account closure issues, complaints can be filed through the OCC’s HelpWithMyBank.gov system. The OCC assists customers of national banks, federal savings associations and federal branches/agencies of foreign banks. You can also file through the Federal Reserve Consumer Help complaint process, which reviews complaints and forwards them to the appropriate regulator.
Insurance continues to be an issue
Insurance coverage is an ongoing issue for adult club operators because carriers view nightlife businesses as high-risk due to alcohol service, late-night hours, security incidents, premises-liability claims, assault-and-battery exposure, sexual misconduct allegations, weather-related property losses and increased litigation costs. The broader insurance market has shown some improvement in 2026, but casualty and liability costs remain difficult. Adult clubs face even tighter underwriting because of reputational bias, limited carrier appetite and exclusions.
Owners help protect themselves by documenting COAST outreach, active shooter training, de-escalation training, written safety policies, incident-response procedures, staff training logs, security protocols, ID-checking procedures, vendor controls and law-enforcement cooperation. The more a club proves it operates as a professional safety-conscious hospitality business, the better positioned it is to defend claims, negotiate with insurers, avoid exclusions where possible and preserve access to coverage.
Training equals club growth
ACE National’s training and outreach programs continue to be among the most important services we provide. It’s a minimal investment compared to the potential cost of one crisis, one lawsuit, one licensing challenge, one violent incident, one trafficking allegation or one preventable failure in staff response.
Club Operators Against Sex Trafficking (COAST) remains a cornerstone of our commitment to responsible operation, awareness and prevention. Since its inception in 1999, COAST has reached more than 25,000 attendees. It protects vulnerable people potentially brought to clubs from outside sources, and it protects lawful businesses from being unfairly lumped together with illegal activity.
De-escalation training has become increasingly important, as it gives employees and managers practical tools to calm situations before they become dangerous. That’s good for workers, good for customers, good for liability prevention and good for the long-term reputation of the industry. Credible research from RAND, OSHA and Starbucks shows that de-escalation training reduces lost workdays, complaints, turnover, disruption, safety incidents, liability exposure and customer dissatisfaction — all of which directly affect profitability and operational stability.
Active shooter training is another essential program. No one wants to think about active-threat scenarios, but responsible businesses cannot ignore them. Preparedness is not fearmongering. It’s leadership. ACE National’s Active Shooter Training helps clubs think through response, communication, situational awareness and emergency planning before a crisis occurs.
Mentorship builds the next generation
ACE National’s Mentoring Program is another important investment. The strength of this industry has always depended on people willing to share hard-earned knowledge, and our program offers members access to sound business knowledge. When experienced leaders help the next generation understand what responsible operation requires, the entire industry becomes stronger.
ACE National is also fortunate to have advisory attorneys who understand the constitutional, regulatory, employment, zoning, licensing and operational issues facing adult businesses. Additionally, ACE’s legal updates, alerts and attorney relationships help members understand legal developments and respond with clarity. Admittedly, no trade association can replace a club’s own legal counsel, but ACE National helps ensure that members are better informed, better connected and less isolated.
The ACE website and resume portal
ACE National’s upgraded site makes it easier for members and prospective members to find information, learn about benefits, explore training, connect with providers and better understand the role of the association. One of the most important additions is the resume portal, which gives individuals seeking employment in the adult entertainment industry a pathway to submit a resume and connect with trusted industry members.
Years of music licensing discounts
ACE National’s ASCAP and BMI music licensing discount program remains one of the clearest examples of what a strong national trade association delivers. For 15 years, ACE has helped members access meaningful music licensing discounts, collectively saving club owners millions of dollars.
Music is central to our business, but I get it. Licensing costs are sometimes financially painful, especially for smaller clubs. By helping members remain compliant and reduce those costs by 30% or more, ACE National helps club owners. This is the kind of practical, measurable member benefit that doesn’t make headlines but makes a difference.
An industry worth defending
A State of the Union address celebrates progress, but it should not pretend the adult nightclubs don’t face challenges. The industry is often regulated by people who have never operated a club, worked for one, depended on one for income or understood the economic ecosystem surrounding it. This is why ACE National’s mission remains so important.
ACE National supports legally operating adult club owners and executives who create opportunity for people who may not fit into traditional work structures. But defense of this industry doesn’t happen in a vacuum. It requires members to read alerts, answer calls, support associations, attend meetings, participate in and host training and speak up when legislation threatens their businesses and workers. It requires national coordination and local courage.
Thank you to the people who show up
On behalf of ACE National, I want to thank everyone who has helped move this industry forward over the past year. Thank you to those who testified, wrote letters, made calls, developed talking points, attended hearings, hosted trainings, shared information, renewed memberships, supported music licensing compliance, sponsored programs, mentored newer industry leaders, improved safety practices and challenged unfair narratives.
Thank you to the club owners and operators who continue adapting in a changing hospitality market, who are improving the guest experience, investing in training, supporting their workers and finding ways to keep lawful adult entertainment professional, relevant and resilient.
Thank you to our advisory attorneys and professional partners who help this industry navigate complicated legal and regulatory terrain. Thank you to ED Magazine for providing this platform where the industry can speak, learn from and strengthen itself.
Most importantly, thank you to the board members and our general members who understand why ACE National is important. ACE National is us. It is the collective voice of legally operating adult clubs who believe our legal businesses deserve fairness, respect, due process and a seat at the table.
The year ahead always brings new challenges. But this past year proved something important: when this industry is informed, organized and willing to stand together and intelligently speak up, we can win. Our state of the union is stronger when everyone steps up.
Joey Bien is the President of ACE National. For more information, visit www.acenational.org.
