By: Brynn Holland

How the Mob Helped Establish NYC’s Gay Bar Scene

The Stonewall Inn was controlled by the Genovese crime family.

The Stonewall Inn

Yana Paskova/Getty Images

Published: June 22, 2017

Last Updated: March 06, 2025

It was an unlikely partnership. But between New York’s LGBT community in the 1960s being forced to live on the outskirts of society and the Mafia’s disregard for the law, the two made a profitable, if uneasy, match.

As the gay community blossomed in New York City in the 1960s, members had few places to gather publicly. Shunned and criminalized by the broader culture, LGBT people were eager for any spot where they could safely come together. But going to a bar could be a dangerous proposition. At the time, it was still illegal to serve gay patrons alcohol, to display homosexuality in public or for two gay people to dance together. Under the guise of New York State’s liquor laws that barred “disorderly” premises, the State Liquor Authority and the New York Police Department regularly raided bars that catered to gay patrons.

Where the law saw deviance, however, the Mafia saw a golden business opportunity.

How the Stonewall Riots Sparked a Movement

The Stonewall Inn Riots sparked the beginning of the gay rights movement in America. Learn how members of the LGBTQ community came together to protest exploitation and police harassment.

Since the days of Prohibition, when alcohol was outlawed, the mob controlled much of New York City’s nightclub business—with special expertise in its shadowy, illegal fringes. The Genovese family, one of the so-called “five families” that dominated organized crime in New York City, reigned over Manhattan’s West Side bar scene, including the Village where the LGBT community was taking root.

A member of the Genovese family, Tony Lauria, a.k.a. “Fat Tony,” purchased the Stonewall Inn in 1966 and transformed it from a bar and restaurant that attracted straight clientele into a gay bar and nightclub. Run on the cheap, Stonewall was known for being both dirty and dangerous: It operated without running water behind the bar, glasses were “cleaned” by being dunked in tubs of dirty water, and toilets regularly overflowed. The club also lacked a fire or emergency exit.

Explore New York City’s five Mafia families, who ran organized crime in America. Available to stream now.

Despite its less-than-ideal conditions, Stonewall quickly became a popular destination in the gay community—even something of an institution. It was the only place where gay people could openly dance close together, and for relatively little money, drag queens (who received a bitter reception at other bars), runaways, homeless LGBT youths and others could be off the streets as long as the bar was open.

To operate its gay bars, the Mafia greased the palms of the NYPD. “Fat Tony,” for one, paid New York’s 6th Precinct approximately $1,200 a week, in exchange for the police agreeing to turn a blind eye to the “indecent conduct” occurring behind closed doors.

An NYPD officer grabs someone by their hair as another officer clubs a young man during a confrontation in Greenwich Village after a Gay Power march in New York, 1970. 

AP Photo

An NYPD officer grabs someone by their hair as another officer clubs a young man during a confrontation in Greenwich Village after a Gay Power march in New York, 1970. 

AP Photo

Not that the police didn’t still raid the LGBT establishments. But first they would tip off the owners, who told them the best time to come by. Raids often occurred in the early afternoon, when few customers were present, so businesses had enough time to resume normal operations by night. David Carter explains in his book Stonewall: The Riots That Sparked the Gay Revolution, that during a typical raid, bar owners would change the lights from blue to white, warning customers to stop dancing and drinking. Patrons were lined up and required to show identification; if they didn’t have any, they could be arrested. Men were hauled in for dressing in drag and women for wearing less than three pieces of traditional “feminine” clothing. Sometimes the cops even went to the extreme measure of sending female officers into the bathroom to verify people’s gender.

To get around laws that prohibited serving alcohol to LGBT patrons, many gay bars—including the Stonewall—operated ostensibly as “bottle bars,” private clubs where members would bring their own alcohol. Patrons, on entering, were asked to sign into a “membership” book, but most people entered faked names. In reality, the mob provided the liquor, leaving most bottles outside in cars or in hidden closets where they could be easily stashed during raids.

The Mob designed the operations to maximize profits—from the cheap, watered-down alcohol sold at high mark-ups to the jukebox and bootleg cigarettes. In addition, says Phillip Crawford Jr. in his book, The Mafia and the Gays, the mob also plied the gay flesh trade, with bouncers “pimping out” patrons. But while the NYPD attempted to crack down on Mafia-run prostitution in the mid 1970s, during something known as “Operation Together,” the effort was eventually shut down in 1977. Apparently, too many high-powered individuals—including Mafia members, police officers and big Hollywood names—were implicated as clients.

Some scholars have argued the infamous Stonewall riots that sparked the nationwide LGBT movement were as much a resistance against the mob’s exploitation of the gay community as they were a struggle against police harassment and discriminatory laws. Indeed, a handwritten message in chalk on a boarded-up window of the Stonewall Inn after the 1969 riots read, “Gay Prohibition Corupt$ Cop$ Feed$ Mafia.” Two of the main gay-rights organizations that came out of the riots, the Gay Activists Alliance and Gay Liberation Front, actively championed getting organized crime out of gay bars.

The Mafia’s stranglehold on New York City’s nightlife businesses took a huge hit with a series of high-profile prosecutions in the 1980s. But while the LGBT community had found it less than ideal colluding with crime lords, in some ways the mob provided them with a much-needed haven at a time when the rest of the country was still hostile and unwelcoming.

Stonewall Inn

The Stonewall Inn is a bar located in New York City’s Greenwich Village that served as a haven in the 1960s for the city’s gay, lesbian and transgender community. At the time, homosexual acts remained illegal in every state except Illinois, and bars and restaurants could get shut down for having gay employees or serving gay patrons.

Redux

Most gay bars and clubs in New York at the time were operated by the Mafia, who paid corruptible police officers to look the other way and blackmailed wealthy gay patrons by threatening to “out” them. Here, protesters demonstrate outside the New York gay bar, Christopher’s End.

Diana Davies/The New York Public Library

Stonewall Riots

During the early hours of June 28, 1969, the Stonewall Inn was raided by police with no warning. Armed with a warrant, police officers roughed up patrons and arrested people for bootlegged alcohol and other violations, including criminal mischief and disorderly conduct. More police arrived and the crowd erupted after police roughed up a woman dressed in masculine attire who had complained that her handcuffs were too tight.

NY Daily News Archive/Getty Images

The Stonewall Riots

People started taunting the officers, yelling “Pigs!” and “Copper!” and throwing pennies at them, followed by bottles. Some in the crowd slashed the tires of the police vehicles. As the mob grew, NYPD officers retreated into Stonewall, barricading themselves inside. Some rioters used a parking meter as a battering ram to break through the door; others threw beer bottles, trash and other objects, or made impromptu firebombs with bottles, matches and lighter fluid.

Fred W. McDarrah/Getty Images

Two transgender women of color, Marsha P. Johnson and Sylvia Rivera (far left) were said to have resisted arrest and were among those who threw bottles (or bricks or stones) at the police. They are pictured at a 1973 rally for gay rights in New York City.

Diana Davies/The New York Public Library

Marsha P. Johnson was a Black and transgender woman and revolutionary LGBTQ rights activist. She later established the Street Transvestite (now Transgender) Action Revolutionaries (STAR), a group committed to helping homeless transgender youth in New York City.

Diana Davies/The New York Public Library

Sylvia Rivera was a Latina-American drag queen who became one of the most radical gay and transgender activists of the 1960s and ’70s. As co-founder of the Gay Liberation Front, Rivera was known for participating in the Stonewall Riots and establishing the political organization STAR (Street Transvestite Action Revolutionaries).

Kay Tobin/The New York Public Library

The Stonewall Inn

After the Stonewall Riots, a message was painted on the outside of the boarded-up bar reading, “We homosexuals plead with out people to please help maintain peaceful and quiet conduct on the streets of the village.” This sign was written by the Mattachine Society–an early organization dedicated to fighting for gay rights.

Fred W. McDarrah/Getty Images

Stonewall Inn

An unidentified group of young people celebrate outside the boarded-up Stonewall Inn after the riots. The bar opened the night after the riots, although it did not serve alcohol. More and more supporters gathered outside the bar, chanting slogans like “gay power” and “we shall overcome.”

Fred W. McDarrah/Getty Images

Over the next several nights, gay activists continued to gather near the Stonewall, taking advantage of the moment to spread information and build the community that would fuel the growth of the gay rights movement. The Gay Liberation Front was formed in the years after the riots. They are pictured here marching in Times Square, 1969.

Diana Davies/The New York Public Library

Here, Sylvia Ray Rivera (front) and Arthur Bell are seen at a gay liberation demonstration, New York University, 1970

Diana Davies/The New York Public Library

Marsha P. Johnson is seen at a Gay Liberation Front demonstration at City Hall in New York City.

Diana Davies/The New York Public Library

Here, a large crowd commemorates the 2nd anniversary of the Stonewall riots in Greenwich Village of New York City in 1971. Fifty years after the riots, the NYPD made a formal apology on June 6, 2019, stating the police at that time enforced discriminatory laws. “The actions taken by the N.Y.P.D. were wrong — plain and simple,” said NYPD police commissioner James P. O’Neill.

Grey Villet/The LIFE Picture Collection/Getty Images

Related Articles

About the author

Fact Check

We strive for accuracy and fairness. But if you see something that doesn't look right, click here to contact us! HISTORY reviews and updates its content regularly to ensure it is complete and accurate.

Citation Information

Article title
How the Mob Helped Establish NYC’s Gay Bar Scene
Website Name
History
Date Accessed
March 21, 2025
Publisher
A&E Television Networks
Last Updated
March 06, 2025
Original Published Date
June 22, 2017

History Revealed

Sign up for "Inside History"

Get fascinating history stories twice a week that connect the past with today’s world, plus an in-depth exploration every Friday.

By submitting your information, you agree to receive emails from HISTORY and A+E Global Media. You can opt out at any time. You must be 16 years or older and a resident of the United States.

King Tut's gold mask