How will I rub my hands between a strippers tits when they walk around for a tip?
How will I give the 100 strippers that bother you all night go away money every other minute?
It would be fun though to gamble on a site w/btc, and then if you win you buy a "special dance", if you lose you get the regular kind
I do however think that they should accept requests from strip clubs. There is nothing wrong with that, is there?
It's the chargebacks.
Processing payments for the adult entertainment industry is a specialised sector when we're talking mainstream payment methods, because of the extreme amount of chargebacks involved.
That is, if you run a porn site or strip club you can't just integrate PayPal or Stripe or Worldpay or whatever. They won't touch you. You need to go to specialist payment providers. Similar (but not as bad) for other sectors like gambling.
So I am not surprised that Bitpay takes that stance.
In any case there is so much money in adult entertainment that I don't see why they would find it difficult to hire a consultant to set their payment system up to directly use Bitcoin and cash out to fiat by itself if necessary.
Bitcoin would help strip clubs with chargebacks. One can call their credit card company and say they didn't make the charges, they can't call their bitcoin wallet and demand their bitcoins be refunded.