I have this suspicion that bars like that existed forever in cities. Usually tolerated by being studiously ignored. Except when there is a big migration to the cities by vastly more conservative rural people. First thing to the new comers try to do is shut down the dance halls, gay bars. Clamp down on brothels and street walkers. Unmarried people shacking up. And make everyone go to church.

That sort of thing is behind everything from conservative Hindu's harassing unmarried couples in India, to prohibition, the movie code in the 1930-1960's. Probably the move from urban to suburban in the US is behind the shift back to conservative mores.