Las Vegas Sun

March 28, 2024

Jaguars loses its bid for booze

Strip club giant Jaguars is expected to remain closed after a District Court judge on Tuesday denied a motion that would allow the club to serve alcohol.

The club's former owner, Michael Galardi, along with Dominic Gentile, the lawyer representing the new owner of the club, Galardi's father, Jack Galardi, had asked District Judge Jennifer Togliatti to issue a temporary restraining order that would have prevented Clark County from enforcing its revocation of the strip club's liquor license.

Togliatti ruled against the club late Tuesday.

The club closed last week after the County Commission voted to revoke the license, but then reopened, serving non-alcoholic beverages. Gentile said the club wasn't making money without serving alcohol and closed again.

Gentile said he is considering taking his fight to the federal court system or the Nevada Supreme Court. But he also said he didn't plan to make any moves until after the holidays.

"Jaguars will probably remain closed unless and until some court gives us the interim protection we feel we're entitled to," he said.

Gentile said between 400 and 500 dancers lost work as a result of the closure. The dancers are not employees but independent contractors, he said.

"There are about 500 people who made a living at Jaguars who are no longer making a living at Jaguars," he said.

Two weeks ago the County Commission revoked the liquor license for the Leopard Lounge and Jaguars, the topless clubs formerly owned by Michael Galardi.

The liquor licensee for both clubs was Michael Galardi, but he is at the center of a federal public corruption case that has led to indictments of one current and three former Clark County commissioners. Galardi is also at the center of a probe in San Diego and has pleaded guilty to federal charges in connection with the probes.

That makes him unsuitable to hold liquor licenses, Clark County officials said.

Gentile had argued that because county regulations link the liquor license and the adult cabaret license, the county is infringing on the owner's First Amendment rights by revoking half of its license.

Gentile said the county's own definition of a cabaret is a topless dancing component plus the ability to sell liquor. As a result, he said, the entire ordinance is dependant upon the liquor license, he said.

Togliatti said Tuesday that the issue at hand was whether the revocation of the club's liquor license caused a "de facto revocation" of its adult cabaret license.

Togliatti ruled that it does not, according to county regulations.

She said county regulations make it clear that the liquor license and the adult cabaret license are two separate components and that those components contain several inherent differences.

An individual owner, for instance, holds the liquor license, while a corporation holds the cabaret license, she said. The licenses also hold separate and distinct safeguards.

Togliatti did, however, warn the county about its potential handling of other licensing issues with the club in the future.

Clark County Deputy District Attorney Kathleen Jannsen had argued that the loss of the club's liquor license could be grounds for the revocation of its adult cabaret license down the line.

She said the county is not currently trying to revoke Jaguars' adult cabaret license and that when it does, it would do so through a court hearing and follow due process.

"That hasn't arisen yet. We haven't gotten to that point," she said.

But Togliatti said the court would "take issue" if the county used the revocation of the club's liquor license against its owners. In that case, the court would "consider an injunction to preserve the status quo," Togliatti said.

Gentile said he was pleased with Togliatti's comments to the county regarding the possibility of future revocations.

"She certainly issued a fair warning to the county," he said. "We didn't ask for that, but we'll take it."

Gentile said Jack Galardi had already applied for liquor licenses for the two strip clubs. Gentile said he hopes they will be granted by the end of January.

Before Togliatti made her ruling, Gentile had suggested that former Las Vegas City Councilman Matthew Callister act as an independent third party receiver in the interim, to oversee the club's revenue until the judge made a final decision. Callister was in court during Tuesday's hearing.

Gentile said Callister could make sure Michael Galardi wouldn't be benefiting from any of the club's profits and "maintain the status quo."

Togliatti and Janssen both rejected that idea.

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