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Gordon Hachborn legally defined lap dancing and ruled that it did not contravene Canadian public decency statutes. The ruling gave the Canadian parliament twelve months to rewrite Canada's prostitution laws; in the meantime, existing anti-prostitution laws continued to be enforced.A number of conflicting judgements were issued in the years that followed, including decisions to close certain bars in which sex acts took place on the floor of the club and other rulings in which patrons were allowed to touch the dancers, as long as an actual sex act did not take place. Some jurisdictions in the United States outlaw lap dances and enforce a minimum distance between dancer and patron.In many clubs, the duration of a lap dance is measured by the length of the song being played by the club's DJ. Depending on the local jurisdiction and community standards, lap dances can involve touching of the dancer by the patron, touching the patron by the dancer, neither, or both.

This led to the displacement of strip clubs and table dancing clubs in Canada by lap dancing clubs. However, a majority of dancers at the Commission's meetings and the San Francisco Board of Supervisors' meetings protested against these efforts, fearing for their income and claiming that these rooms were safer than other venues.

However, across from Detroit in Windsor, Ontario in Canada, lap dancing remained legal, even where alcohol was served, and sex clubs were also legal in Windsor.

In the 1970s, New York's Melody Theater introduced audience participation and called it "Mardi Gras".

The Melody Theater became the Harmony Theater and operated in two locations in Manhattan for over 20 years until it was closed down in 1998.

Americans from Washington State made the trip to the club from the United States, which at the time had stricter laws.

In a landmark ruling regarding the 1994 case of Pat Mara and Allan East (the owner and manager of Cheaters Tavern), Judge E. Canada) the Supreme Court of Canada found the laws prohibiting brothels, public communication for the purpose of prostitution, and living on the profits of prostitution to be unconstitutional.Also during the 1970s, adult film makers Jim and Artie Mitchell had been running an adult movie house, called the O'Farrell Theatre, in San Francisco to feature their films.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.There is some debate as to whether lap dancing is entertainment or a type of sex work.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.The figures plateaued during the subsequent weaker economic climate and had hardly changed by 2012.

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