Story by Angelina Spencer-Crisp, ACE Executive Director
The U.S. Supreme Court has spoken—or rather, remained silent.
On June 30, the SCOTUS declined to hear a constitutional challenge against Georgia’s so-called “sex trafficking prevention tax,” leaving in place a 1% levy on adult clubs that offer both nude dancing and alcohol.
While the state frames the tax as a funding mechanism for helping children of sex trafficking, club owners across the country should take note: this ruling opens the door to targeted, content-based taxation disguised as public policy.
Georgia’s tax, passed in 2015, was designed to apply only to venues that feature nude dancing paired with alcohol service—effectively isolating adult entertainment for unique financial punishment.
Georgia club owners argued this violates the First Amendment by discriminating against erotic expression. But the Georgia Supreme Court upheld the tax in a 7-1 decision, claiming the fee could be “avoided” by not serving alcohol or not allowing substantial nudity—an unrealistic proposition for an industry already tightly regulated. And with SCOTUS refusing to weigh in, that ruling is now final. What does this mean for the broader adult club industry? A lot.
While Georgia’s 1% strip club tax may appear nominal, it’s a legal wedge that sets a precedent for other states. It’s a decision emboldened by anti-club ideology to tax, restrict, and slowly smother legal businesses under the guise of negative secondary effects.
Remember, it was decided in court years ago that municipalities don’t actually have to prove negative secondary effects (NSE’s)…they only have to claim, even if they use another city’s research, that NSE’s exist.
And make no mistake—while some who push these policies are concerned citizens and elected officials, most are not. The ones who are not are part of a long-term, organized campaign to erase adult businesses.
A bigger agenda, a narrower America
Groups like the Citizens for Community Values have long promoted a “Handmaid Tale” vision for America—one where biblical interpretations override constitutional freedoms and subjugate females.
Their effective and well-attended grassroots trainings, model legislation, and lobbying efforts aim to close adult clubs not just for what they are, but for what they represent: personal choice, female bodily and financial autonomy, and adult freedoms.
One of these groups receives a jaw-dropping average annual donation of $30 million dollars. It is tough for any industry to compete against such a well-oiled machine, but particularly so for an industry like adult entertainment.
Phil Burress, former Citizens for Community Values (CCV) president, once declared, “If people cannot decide between right and wrong—we will decide for them.”
The CCV was renamed a few years ago and is now known as, “The Center for Christian Virtue”. Notably, Burress is a self-described former porn addict who used to have his third wife write summaries of hotel porn movies for him. He’s practically out of the picture now having comfortably retired to Hawaii years ago—but others have picked up his torch and find themselves seated in grand positions of political power.
He and others believe they are called by God to shape national policy and run the country—but this isn’t just about zoning laws or strip club taxes. It’s a fire-and-brimstone personal enrichment and political power scheme masquerading as a devout cultural crusade.
The danger of the exception becoming the rule
Most legally licensed adult clubs comply with a staggering number of laws—from local business licensing and age-verification protocols, to zoning, fire safety, and alcohol regulations, and these clubs run good, law-abiding businesses.
Unfortunately, there does exist a handful of bad actors in the industry…and when they’re caught—whether it’s underage workers in a club or failure to check IDs—those headlines fuel sweeping legislative backlash. It also helps groups similar to the CCV, which hold up the news story as proof of indecency or criminal activity requiring swift legislative action.
Politicians understandably react, often without understanding the nuance between licensed clubs and illicit venues like unlicensed cantinas or pop-up strip clubs–because they genuinely, in many cases, want to help. The result? Law-abiding clubs get lumped in with underground or bad operators—and punished accordingly.
The irony with the Georgia strip club tax is that no credible prevalence study has ever measured how much sex trafficking occurs specifically within legally operating adult clubs. There is no data. And yet entire legal frameworks are built around assumptions, anecdotal evidence, moral panic, and political optics–helped along by money and having friends in high places who already decided the fate of adult clubs (along with other issues) long ago.
ACE National has worked to counter this narrative since 2009 through COAST (Club Operators Against Sex Trafficking), a nationwide initiative that promotes compliance, best practices, and collaboration with law enforcement to prevent trafficking.
Our message has been clear: licensed adult clubs are not the enemy—they are often allies in identifying and reporting illicit activity. But without evidence-based policy, the adult club industry will remain ripe targets of a lop-sided culture war.
When taxes can be a lifeline, not a punishment
Ironically, given this Georgia decision, taxes might be a way for clubs to demonstrate legitimacy and used to support local communities—if those taxes are fairly levied and transparently used.
For example, Illinois has an operator surcharge on adult businesses and the money is supposed to be used to help victims of sex trafficking. But it has failed to raise the funding the state thought it would, and most of the money goes to salaries and operational costs for running the office. Yet, the state has mostly left the clubs alone since its inception, allowing the strict laws already on the books in Illinois to do their job.
Likewise, it’s more important for elected officials to know that adult clubs contribute significantly to local economies, create jobs, and generate tourism revenue…and taxes.
A reasonable, predictable tax structure might provide better legal cover and deter arbitrary shutdowns or unfair laws. But taxes that are selectively imposed or tied to unproven accusations—like Georgia’s—do the opposite. They criminalize free expression and stigmatize an entire industry based on content.
Plus, law enforcement, victim advocates, ministries, code enforcement, health inspectors, and elected officials can typically enter adult clubs across the country at any time to ensure there are no victims of human trafficking–and clubs are already about as heavily regulated as nuclear power. When it comes to adult clubs, the idea and basic tenet of LESS government go out the window as far as cultural crusaders are concerned.
Where we go from here
Despite the Supreme Court’s refusal to hear the Georgia case, it is not a statement of agreement—it’s a signal that the Court has bigger fish to fry, at least for now. But that doesn’t mean the issue is dead.
Legal experts point out that there are conflicting rulings on what constitutes “content discrimination,” and the issue will likely resurface in another form, another case, another state.
For now, Georgia clubs are being offered assistance in negotiating payments without penalties or interest, thanks to ongoing advocacy.
And the adult club industry must maintain vigilance. We are not just fighting taxes—we’re defending the American constitutional right to exist. Adult clubs need not apologize for offering women opportunities and financial options far above minimum wage. They also need not apologize for pursuing the same American dream their repressed counterparts chase.
Ultimately, the adult club industry needs sensible regulation grounded in reality, not rhetoric. We also need cohesion, well-trained managers and vested owners, and a voice (along with valid, honest research) in the policies that impact this industry’s survival.
