Toronto club owners will now be able to open up their dance floors in almost any neighbourhood in the city as new bylaws for restaurants, bars and entertainment venues come into effect this month.

The changes allow nightclubs to open in most commercial zones in the city, rather than only being permitted in the downtown core.

But they can't open in a residential building and must be located on the first floor or basement level, the amended bylaws say.

Spencer Sutherland, former co-chair of the Toronto Music Advisory Committee, said the outgoing bylaws created a "pressure cooker environment" in the city's downtown core.

"On the one hand, they thought that that would make it easier to police, but really it just increased rowdiness and cause a lot of very large venues and a lot of spill over into the streets and a lot of issues," he said.

"I think that having that activity more dispersed is probably better for everyone."

That concentration also made getting downtown on the weekend difficult, said Shannon Oulton, who lives in the Greater Toronto Area.

"It'll be good to not drive like an hour to get downtown in traffic, and kind of be closer to where you live."

The changes could also encourage other businesses to stay open later and create new opportunities for businesses that are indirectly supported by nightclub activity, such as takeout restaurants, said Meg Marshall, who manages the Bloordale Village and Bloorcourt business improvement areas (BIA).

"It allows a different type of night economy activity to happen in other parts of the city that may not be happening."

But the changes don't go far enough for some.

Charles Khabouth, CEO of Ink Entertainment, which owns several Toronto nightclubs and restaurants, said he'd like to see the city go further and allow bars and clubs to stay open past 2 a.m. like other major cities do.

"That allows the city to grow, be more cosmopolitan, be more on the global stage."

That being said, Khabouth said allowing nightclubs to open in more areas of the city does open up some expansion opportunities for his business and for the entertainment industry overall.

City council approved the amendments in December 2023 following a multi-year review, but they are only now coming into effect.

The updated bylaws also increase the maximum area bars and restaurants can use for entertainment from six per cent to 25 per cent.

Venues that serve food and also offer entertainment may need to apply for additional licences or transition to a different type.