Businessman Appealed Liquor License Denial in Scranton

A bail bondsman filed a legal challenge after the state rejected a liquor license transfer for a West Scranton bar.

Updated on Oct. 7, 2026 in Openings & Closings

Isometric editorial illustration of a single glass tumbler on a wooden surface, representing a regulatory liquor license legal challenge. — Steven Krauss filed a formal appeal in Lackawanna County Court contesting the Pennsylvania Liquor Control Board's denial of a liquor license transfer. AI Illustration. Upload story photo >

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Steven Krauss has filed an appeal in Lackawanna County Court challenging the Pennsylvania Liquor Control Board's denial of a liquor license transfer. The board rejected the application for a property located at 100 N. Main Ave following concerns about potential nuisance operations.

Why it matters

The Lackawanna County District Attorney's Office successfully intervened in the licensing process by arguing the applicant has ties to previous local establishments shut down due to high crime. This case highlights how regional authorities are working to prevent the reopening of establishments labeled as nuisance bars.

The Pennsylvania Liquor Control Board formally denied the license transfer on September 16, 2026. The applicant, a bail bondsman with 20 years of experience, is now seeking a reversal of that decision in local court.

The players

Steven Krauss

He is a long-time bail bondsman who is currently challenging a state regulatory decision.

Pennsylvania Liquor Control Board

This state agency oversees the issuance and regulation of liquor licenses across Pennsylvania.

Lackawanna County District Attorney's Office

This local government office manages criminal prosecutions and intervenes in matters affecting public safety.

The details

The district attorney's office opposed the transfer by citing the applicant's history with establishments like the Diamond Club in Old Forge and the Blue Face Global Hookah Lounge in Scranton, both of which were closed as nuisance bars. The state liquor board held an evidentiary hearing on the application in April before ultimately issuing its formal rejection.

The Diamond Club in Old Forge was closed in 2023.
The Blue Face Global Hookah Lounge in Scranton was closed in 2024.
The Pennsylvania Liquor Control Board held a hearing on the application on April 17, 2026.
The board issued a denial of the transfer on September 16, 2026.
Steven Krauss filed the court appeal on October 2, 2026.

Market Landscape

This case follows a pattern established by the closure of the Diamond Club in Old Forge, where local authorities prioritize public safety concerns over individual licensing requests. The aggressive regulatory stance reflects an ongoing effort to limit the footprint of businesses perceived as high-crime venues in Scranton.

Residents in West Scranton may see continued stability in their neighborhood if the state maintains its denial of the liquor license. Business owners in the area should remain aware that past associations with shuttered nuisance establishments can significantly impact future licensing efforts.

The takeaway

The court's decision on this appeal will set a firm precedent for how the state handles liquor license transfers for applicants with histories of involvement in closed nuisance bars. Residents and business owners should monitor the court docket to see how the judiciary balances private business rights against municipal public safety arguments.