NEW YORK – RCI Hospitality Holdings, parent company of Rick’s Cabaret, is facing major legal challenges. 

On September 16, New York Attorney General Letitia James unsealed a 79-count indictment charging the company and several executives with conspiracy, bribery, and criminal tax fraud (Office of the New York Attorney General, September 16, 2025).

Prosecutors allege that between 2010 and 2024, RCI bribed a former state tax auditor with trips, hotel stays, restaurant outings, and private dances at its clubs, including Miami’s Tootsie’s Cabaret. 

According to prosecutors, text messages between RCI executives and the former tax auditor spelled out how “Dance Dollars” (lap dance credits) were used to soften the impact of audits.

For example, a 2023 message reportedly reads, “Tim got the guy to $47k in Vivid New York. But owes him a couple trips.”

In another texting exchange from April 2018, RCI CEO Eric Langan allegedly messaged, “We need to talk about New York and Dance Dollars,” adding later that same day, “I think I got the sales taxes in New York to 350 plus interest possibly. Tim [Winata] is discussing with the auditor tonight.” (Office of the New York Attorney General; Reuters; CBS/AP News, September 16-17, 2025)

In return for these favors, the auditor allegedly gave the company favorable treatment in at least six sales tax audits. The indictment also says RCI failed to pay more than $8 million in sales taxes and falsified records to cover it up (Office of the New York Attorney General, September 16, 2025).

Company pushes back

RCI responded with a statement saying the charges are only allegations. The company stated that it is publicly traded, undergoes regular audits, and has policies in place to pay all non-disputed taxes (RCI Hospitality Holdings, September 16, 2025).

Local ties to Central City

Langan is RCI’s CEO and a part-time Central City resident. He often appears at public meetings and events. He said he had nothing to add beyond the company’s official statement. He also noted there are no plans to close or sell any Colorado clubs (Colorado Politics, September 17, 2025).

Langan’s connections to local officials have also drawn attention. In 2023, Central City Mayor Jeremy Fey admitted to accepting a free ride in RCI’s corporate jet with Langan, whom he described as a friend, along with box seats at an NFL game. 

The trip raised questions about whether it was an attempt at bribery to secure approval for Rick’s Cabaret and Steakhouse, given that public servants are prohibited from accepting gifts worth more than $50.

Fey, who had previously recused himself from voting on matters related to RCI in years past, chose to participate in the Council's most recent decision. In a narrow 3-2 vote, the Central City Council agreed to move the sexually oriented business question to the voters in a special election.

Wage theft ruling in Denver

RCI’s Denver clubs, Rick’s Cabaret and Diamond Cabaret, were recently ordered to pay $14 million after an investigation by the Denver Auditor’s Office found more than 230 workers had been underpaid (Denver7, September 5, 2025). 

Violations included misclassifying entertainers, forcing them to pay house and promo fees, requiring tip splits, and fining workers for missing stage or shift rules (Denver7, September 5, 2025).

Investors react fast

On the day the indictment became public, RCI’s stock dropped nearly 16 percent (Reuters, September 16, 2025). 

Law firms have since launched securities fraud investigations on behalf of shareholders who lost money in the drop (The Globe and Mail via Business Wire, September 19, 2025).

What comes next

If convicted, some of RCI’s top executives could face prison time. Even before the case reaches trial, the company is dealing with shaken investor confidence and heavier regulatory scrutiny. 

For Colorado, where RCI already draws attention, the indictment is likely to intensify debates over licensing and oversight.

For Central, the question is whether this development will affect the vote in the November 4 special election, and ultimately the zoning laws in Central City, whether to allow or prohibit sexually-oriented businesses like Rick’s Cabaret and Steakhouse to operate on Main Street.