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Strip club loses battle over scrip at Albany appeals court FacebookTwitterEmail ALBANY – The Penthouse just got more expensive for a Manhattan strip club executive – at least when it comes to paying state taxes. Appellate justices in Albany on Thursday upheld lower rulings in determining that Robert Gans, managing member of The Penthouse Executive Club, a topless establishment in midtown Manhattan, can be taxed on scrip, the currency that the strip club sells to customers who, in turn, fork over the cash substitute to dancers as fees and gratuities for private dances. In a unanimous 5-0 decision, the Appellate Division of state Supreme Court’s Third Department upheld a ruling by the state Tax Appeals Tribunal and an administrative law judge. Justices found while scrip tips themselves may not be subject to tax, the Penthouse Executive Club failed to show the amount of scrip it sold that could be attributed to tips.

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