Raines law
The Raines law, authored by John Raines, was passed on March 23, 1896, by the New York State Legislature. It was nominally a liquor tax, but its intention was to curb the consumption of alcohol by imposing regulations.
Among other provisions, it prohibited the sale of alcoholic beverages on Sunday except in hotels. Most men worked a six-day week, and Sunday was the only full day for drinking at saloons. Under the law, however, hotels were allowed to serve liquor on Sunday, to guests only, if it was served during a meal or in the bedrooms of the hotel. State statutes allowed that any business was considered a hotel if it had 10 rooms for lodging and served sandwiches with its liquor. Saloons quickly found a loophole by adding small furnished bedrooms and applying for a hotel license. Dozens of "Raines law hotels," often located directly above saloons, opened.
As a contemporary source put it, "This offered a premium on the transformation of saloons into hotels with bedrooms and led to unlooked-for evils" (an increase in prostitution), as the rooms in many "Raines law hotels" were used mostly by prostitutes and unmarried couples. (In some cases these rooms may not even have been available at all; in a 1917 novel, the protagonist sees "a Raines Law hotel with awnings, indicating that it was not merely a blind to give a saloon a hotel license but was actually open for business.")