New bylaws for Toronto nightclubs come into effect on Jan. 1

Toronto’s nightclub scene will wake up on New Year’s Day with a new set of bylaws.

The idea, according to politicians, is to spread out the nightlife industry from just one downtown neighbourhood to across the city.

In 2018, City Hall began reviewing the licensing and zoning regulations for restaurants, bars and entertainment venues in Toronto and in 2023, industry stakeholders and residents had their say through a series of consultation sessions. In December 2023, city council adopted amendments as part of the Night Economy Review which, among other things, allows nightclubs to be able to open in commercial areas almost anywhere in the city.

Charles Khabouth with INK Entertainment Group – owners of many of the biggest nightclubs in Toronto – agrees too many venues are clustered around King Street West.

“Eventually, I think, it’s going to hurt itself, that neighbourhood, because the concentration of it all on one little street is going to backfire 100 per cent,” he tells CityNews.

“The Entertainment District, we’re expanding that as we’re looking for more uses throughout the city so that they’re not concentrated,” explains Carleton Grant with Toronto Municipal Licensing and Standards.

But location is just one of the issues Khabouth says is holding back the nightlife industry in Toronto.

“Anywhere I travel in the world that is a big city, there’s no such thing as 2 a.m.,” he says, referencing the time establishments must legally stop serving alcohol. “It’s 4, 5, 6 (a.m.)”

Coun. Paul Ainslie, the so-called ‘night mayor’ who oversees the nightlife industry, agrees.

“Not everybody shuts down at 2 a.m. and there’s more going on in the city – this isn’t 1950s Toronto.”

Carleton says that is much easier said than done, especially when you don’t make the rules.

“Alcohol and gaming is under the legislation and purview of the province,” he explained. “Council does have a say but it’s on special occasions.”

Among some of the 2025 bylaw changes all new nightclubs in Toronto must be in non-residential buildings, must be the only nightclub in the building, and they can only be on the first floor or basement.