The owner of two underground sex clubs, The Playground and DarkSide agreed to close up shop at his civil hearing Wednesday.
Owner Glenn Hudson operated the clubs under the guise of offering young teens a place to worship God.
Hudson, who does not face criminal charges, only the civil lawsuit intended to halt his activities, told city officials that he was ordained with Universal Life Church and said his work is legitimate.
The Playground closed last month after undercover Dallas police proved it was a swinger's club, not a church.
An investigation by Dallas Police undercover agents alleged that drugs were used at the club.
Hudson allegedly showed pornographic videos on big-screen televisions and had topless dancers. Court documents also said a VIP area offered beds, condoms and more pornographic videos.
The city maintained that Hudson's enterprises violated zoning restrictions and had no religious activity, according to a report in the Dallas Morning News.