The Pennsylvania Liquor Control Board rejected a transfer of ownership of a liquor license at a West Scranton bar based on opposition from the Lackawanna County District Attorney’s Office, which argued the prospective license holder has been associated with nuisance bars in the city and Old Forge.

Steven Krauss and his Grappa LLC business applied to the PLCB for a “change in business structure” to name Krauss as the sole owner of Grappa LLC. The license involves the bar at 100 N. Main Ave. at Jackson Street, which was the former News Room Bar & Lounge and which a decade or so earlier was Manley’s Corner Shop store. More recently, the corner bar had other names, including Bubba Jay’s Bar and Grill in April of 2025 and La Capital Bar & Grill this year.

Former Grappa LLC owners transferred ownership of that firm and its rights in certain lease agreements to Krauss, who then applied to the PLCB for the license change.

As an intervenor opposing the licensing change, the district attorney’s office led by District Attorney Brian Gallagher cited Krauss’s association with the former Diamond Club in Old Forge that was shut down in 2023 as a nuisance establishment; as well as Krauss’ association as a bail bondsman with people involved in the former Blue Face Global Hookah Lounge in the 1800 block of North Main Avenue in Scranton that also was shut down as a nuisance bar in 2024.

The PLCB held a hearing on April 17 on Krauss’ application for a liquor license change at 100 N. Main Ave. in Scranton; and on Sept 16 refused the change of business structure on the liquor license.

On Friday, Krauss sued the PLCB in Lackawanna County Court to reverse the rejection. Some of the information in Krauss’ appeal include:

• On Sept. 16, the PLCB also granted intervenor status in the matter to Lackawanna County Assistant District Attorney Danielle Guari, representing her office; but denied intervenor statuses to an owner of a business and a resident of North Main Avenue.

• The district attorney’s office’s opposition noted Krauss and his Grappa LLC previously owned the property at 107 N. Keyser Ave. in Old Forge that was rented out as the Diamond Club gentleman’s club, and was “legally determined by the court to be a nuisance bar/property.”

• Krauss also is a bail bondsman with “significant and substantial ties” to another nuisance bar/property, Blueface Global LLC at 1826 N. Main Ave. Rear in Scranton, which also was legally determined by the court to be a nuisance bar; as well as ties to individuals who operated and/or frequented Blueface Global LLC and the Diamond Club through his bail bond company.

• “Notably, both of these establishments have been shut down through the legal process over the course of the last two (2) years due to being a detriment and negative impact to public safety due to high crime associated with these establishments,” Guari argued before the PLCB. “Approval of a new license risks similar adverse consequences, directly impacting the public interest which this Office is charged to protect. This application appears to be a mere mechanism to circumvent the prior injunction orders and for the applicant and his associates to continue with operating nuisance bars within our county.”

• Krauss’ appeal, prepared by attorneys Amil Minora and Paul Batyko of the Minora Krowiak Munley Batyko law firm in Scranton, claims the district attorney’s office failed to provide evidence that Krauss, who has been a bail bondsman for over 20 years, had any associations with anyone from Blue Face before being contracted by them to provide a bail bond; and access to bail is a constitutionally guaranteed right and should not be used as a basis for denial of a PLCB license.

• Krauss also provided to the PLCB “uncontested evidence of good character and good reputation and clean criminal record,” and demonstrated compliance with liquor laws and regulations before the PLCB hearing in April.