Toronto’s new bylaws will restrict nightclubs to operating only on the first floors and basements of residential buildings.

As of now, much of Toronto nightlife is centered in the downtown area. Starting January 1, lawmakers will introduce new bylaws aimed at distributing nightlife venues like bars and restaurants more evenly across the city.

“The Entertainment District, we’re expanding that as we’re looking for more uses throughout the city so that they’re not concentrated,” said Toronto Municipal Licensing and Standards Executive Director Carleton Grant, according to CityNews. The decision to permit nightclubs to operate “almost anywhere in the city” stems from a 2023 Night Economy Review that involved consultations with entertainment industry stakeholders.

The upcoming changes will also allow for a larger maximum floor area for bars and restaurants in Toronto to host guests.

However, not all new bylaws reflect a more relaxed approach. In the new year, nightclubs will only be permitted to operate in commercially zoned buildings that house no other similar establishments. They will also be restricted to occupying the basements or first floors of these buildings.

The bylaws will clarify the criteria for various business types, consolidating existing categories and introducing new ones. As a result, several current bars, nightclubs, and entertainment venues may need to transition to different license types.

In January, Toronto conducted its inaugural town hall meeting focused on the night economy. “One of the problems is that there isn’t enough nighttime activity or vibrancy outside the core,” stated Toronto Film Commissioner and Director of Entertainment Industries Marguerite Piggot at the time. “We heard a lot about that.”

Stakeholders in the nightlife industry continue to advocate for the City of Toronto to extend closing times beyond 2 a.m., asserting that such a change could generate billions in revenue. However, lawmakers have yet to consider this legislation as of now.
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