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Later in 2004, a San Francisco District Attorney's decision to drop prostitution charges against lap dancers in the city changed the sexual culture of San Francisco and "has the potential to influence the policies of other cities". In 1973, an upmarket Vancouver bar called "Gary Taylor's Show Lounge" employed showgirls and strippers as waitresses who gave a free dance with every drink.
The club was raided by the police under the guise of obscenity legislation, but, in 1974, Judge Jack Mc Givern ruled that dancer nudity was not obscene, which started a trend of nude dancing in bars.
Critics of lap dancing allege that some club owners, by installing dark private booths and charging dancers steep stage fees, are covertly condoning and encouraging the sale of sexual acts between customers and dancers.
This can be a concern if, as for instance in the United Kingdom, the club has a Public Entertainment Licence rather than a Sex Establishment Licence, and in jurisdictions where brothels are illegal.
Outrageous entertainers, stunning show girls, and a taste of burlesque with dazzling special effects reinvent the energy of the Moulin Rouge along with theatrics of Las Vegas’s hottest show place.
Most of the strippers who were not dancing were sitting naked on customers' laps for tips.
Clubs vary widely with regard to whether they enforce their rules or turn a blind eye to any violations.
There is some debate as to whether lap dancing is entertainment or a type of sex work.
After Stanich reported back, the Mitchell brothers responded in 1977 by opening three new rooms at their O'Farrell Theatre featuring customer-contact shows: The Ultra Room, The Kopenhagen, and New York Live.
The Kopenhagen's shows were performed by a pair of naked women in a small room with about twenty men.