Signage advises that package liquor is not allowed to be consumed at the Fremont Street Experience Thursday, July 17, 2014.
Wednesday, July 22, 2015 | 3:50 p.m.
A federal appeals court has ruled that Las Vegas businesses should have another chance to challenge an ordinance that restricts advertisement of packaged liquor in or near the Fremont Street Experience.
The 9th U.S. Circuit Court of Appeals said Wednesday that the city must explain why the restrictions apply only to packaged liquor stores. It said other ordinances by Las Vegas encourage the consumption of alcohol and the city has “a greater burden” to justify restricting free speech in this case.
Crazy Ely Western Village and G&G Fremont LLC filed suit after Las Vegas in 2014 enacted an ordinance limiting the sale of packaged liquor on or adjacent to the Fremont Street pedestrian mall. The companies, which operate three stores that sell packaged liquor, filed suit alleging the ordinance violated their rights but lost in a federal district court decision.
The firms appealed, asking the 9th Circuit to file a preliminary injunction against the ordinance only on the issue of free speech.
The ordinance applies only to stores selling off-sale or packaged alcohol along the pedestrian mall. Off-sale beverages are consumed away from the location where they were purchased. The ordinance also lets stores advertise liquor in only 10 percent of their store window space and prohibits signs advertising prices.
The ordinance also ordered the stores to post signs informing customers that it is illegal to open and consume liquor purchased at the store on the pedestrian mall.
On appeal, the stores contended this part of the ordinance violated their First Amendment rights to commercial free speech.
The three-judge panel of the appeals court told District Judge James C. Mahan to consider why the advertisement applies only to certain liquor-sales businesses.
The court said the city must also show why it restricted free speech while not considering other alternatives, such as arresting intoxicated people and underage drinkers, or banning all drinking on Fremont Street.
Mahan must consider whether to grant a preliminary injunction against that section of the ordinance.
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