Abstract
A crucial yet disputed element in the attempt to regulate sexually oriented businesses has been the negative secondary effects these firms have on nearby businesses and residential communities. This paper addresses a new dimension of the negative effects from such businesses by examining data on administrative and criminal infractions inside a large number of sexually oriented businesses and a comparable group of alcohol establishments. We compare administrative and criminal violations data from the Texas Alcohol Beverage Commission for all adult entertainment clubs (AECs) serving alcohol against a randomly selected sample of bars in the State of Texas. We find that there are important differences between the clubs and bars in 10 of the 23 t-test comparisons. What is more, even though alcohol-related infractions are the most common type of infraction for both AECs and for bars, the number of sex- and drug-related offenses was consistently more prevalent for sexually oriented businesses than for bars. In contrast, the bars have much higher numbers of criminal violations, primarily because of the higher incidence of infractions involving minors. This paper contributes to the literature on negative primary and secondary effects of sexually oriented businesses.
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