A judge in New York has ruled that the city has the right to ban dancing without a permit even if inside a privately owned bar or club. Such establishments must have a special "cabaret license" otherwise a dancing patron could get the club into hot water. The judge said that allowing dancing would increase traffic and noise.
In my experience dancing adds little to the noise. The noise is not from the dancing but from the music and these establishments are allowed to play music. The crime is committed if patrons move to the music.