Absolutely. You saw this in the early days of legalized gambling in the US.
And there was recently an editorial in the Chicago Tribune saying Chicago should shut down its remaining bars licensed to stay open till 4AM (most must close at 2, all get an extra hour on the weekends), because they're too wild. Yet NYC has probably hundreds of neighborhood bars open till 4 without a problem, since 4AM licenses are basically the default there.
And there was recently an editorial in the Chicago Tribune saying Chicago should shut down its remaining bars licensed to stay open till 4AM (most must close at 2, all get an extra hour on the weekends), because they're too wild. Yet NYC has probably hundreds of neighborhood bars open till 4 without a problem, since 4AM licenses are basically the default there.