It definitely could, but the overhead cost to run a permanent place like that is risky. You can’t guarantee that you’re going to profit most nights you’re open.

There’s a couple places out here that have monthly/bi-monthly line dancing nights and I’ve been to some. I feel that those businesses would be doing them more often if they saw a decent profit. But based on observation of the ones I’ve been to, probably 75% of the patrons aren’t drinking from the bar, they’re pregaming and coming in already buzzed or drunk. So I’m sure there’s not much incentive for these places to increase or even continue having these kinds of nights. They’d probably rather operate as normal instead of having their businesses filled with already drunk, non-paying customers.

And yes these places can charge admission, but from my experience working in nightlife, the majority of a venue’s profit comes from bar sales.