SLA expands liquor licensing eligibility for adult recreational businesses

New guidance affirms eligibility for pool halls, virtual reality arcades, escape rooms, axe-throwing venues

State Liquor Authority Press Release

The New York State Liquor Authority announced updated guidance clarifying that a wide range of adult-oriented recreational businesses are eligible to apply for on-premises liquor licenses. The action is part of Gov. Kathy Hochul’s broader effort directing state agencies to review outdated laws, rules and policies to support modernization and economic growth.

This clarification supports the continued growth of New York’s hospitality and tourism sectors by giving businesses and local communities greater flexibility in creating vibrant entertainment venues.

Under this new advisory, businesses such as pool halls, axe-throwing venues, virtual reality arcades, go-kart tracks, darts lounges, mini-golf courses, comedy clubs, paint-and-sip studios, cooking class studios, and other similar adult recreational type venues may qualify for liquor licenses – provided they comply with all applicable state and local laws and demonstrate the ability to serve alcohol responsibly.

“This is about helping modern hospitality businesses grow while maintaining responsible oversight,” SLA Chair Lily Fan said. “Gov. Hochul has tasked us with reviewing outdated rules and modernizing our approach. New Yorkers are embracing social experiences that go beyond traditional restaurants and bars, and under the governor’s leadership, our agency is evolving to meet that trend.”

The action is consistent with the SLA’s legal authority under Alcoholic Beverage Control Law § 64-a(6)(b), which allows the agency to license “lawful adult entertainment or recreational facilities” at its discretion. The accompanying regulation – 9 NYCRR § 48.1 – confirms the SLA may expand eligibility beyond a fixed list of venue types.

“Clear, modern rules make it easier for businesses and communities to thrive,” said Tonya Webster, New York State’s chief customer experience officer. “Gov. Hochul has charged agencies with looking at policies through the lens of the people and businesses they serve. This updated guidance reflects that commitment – removing unnecessary barriers, supporting economic growth, and creating better experiences for New Yorkers.”

This guidance also reflects the SLA’s updated mission, which was modernized in 2014 when the law was amended to include economic development, job creation, tourism, and support for agriculture as core policy goals – marking the first major policy update to the ABC Law since its original enactment in 1934.

Businesses seeking more information about eligibility or licensing requirements should visit sla.ny.gov or contact the SLA’s licensing bureau. See SLA advisory: advisory_2025-1_-_adult_entertainment_businesses_-_op_license_eligibility.pdf 

Max Bookman, counsel to the New York City Hospitality Alliance said, "We commend the State Liquor Authority, and particularly Chair Lily Fan, for their leadership in clarifying and modernizing licensing eligibility to reflect the evolving hospitality and entertainment landscape.”

Empire State Restaurant and Tavern Association Executive Director Scott Wexler said, “The new guidance issued by the SLA to expand the eligibility of adult recreational businesses for liquor licenses is great news for New York's hospitality industry and our customers. It will help these businesses grow by offering more products to their customers. And it recognizes the evolving nature of the hospitality industry rather than burdening modern businesses with rules written following the repeal of prohibition nearly 100 years ago. Thank you to Gov. Hochul for her leadership seeking the elimination of old rules and regulations, and we applaud Lily Fan and the State Liquor Authority for following through in a meaningful way.” 

Melissa Fleischut, president and CEO of the New York State Restaurant Association, said, "We continue to be impressed by Chairwoman Fan and the State Liquor Authority's approach to modernizing and clarifying out-of-date regulations. By allowing these businesses to obtain liquor licenses, New York is creating new opportunities for growth, innovation and economic impact. The New York State Restaurant Association supports this move and is proud to see policies that help our industry adapt and thrive in a changing market.”

Sandra Jaquez, president of the New York State Latino Restaurant Bar & Lounge Association, said, "The New York State Latino Restaurant Bar & Lounge Association congratulates the SLA and Chair Lily Fan for taking this important step to modernize alcohol laws and expand licensing eligibility for recreational venues. This change will unlock new opportunities for hospitality entrepreneurs, strengthen local economies, and create more vibrant spaces for New Yorkers. We encourage continued progress in updating other long-outdated provisions of the ABC laws so that our industry can keep pace with innovation and consumer demand.”