Downtown nightclub appealing liquor authority orders issued for being over capacity, impeding inspectors

Manitoba’s liquor regulator has accused an Exchange District nightclub of exceeding its occupant capacity limit and hindering the work of inspectors.

Diablo, located at Main Street and Bannatyne Avenue, is scheduled to appeal two compliance orders, issued by the Liquor, Gaming and Cannabis Authority of Manitoba, at a Sept. 8 hearing.

An LGCA spokesperson said the compliance orders are part of an ongoing investigation.

The spokesperson said one of the orders was issued after the licensed club was over capacity April 26.

The second order was for allegedly failing to give LGCA inspectors access to the premises at all times and to assist the inspectors during their visits between April 8 and 26.

Diablo’s owner or owners did not respond to messages seeking comment by 4:30 p.m. Next month’s appeal will be heard by a panel of LGCA board members.

The LGCA handed the compliance orders to numbered company, 10148342 Manitoba Ltd., which operates as Diablo.

Previous violations, which were not appealed, led to two temporary suspensions of Diablo’s age-restricted liquor service licence, according to an annual report on the regulator’s website.

The report said Diablo was over capacity Aug. 31, 2025, resulting in a two-day licence suspension from Oct. 24 to Oct. 26. Staff were required to participate in mandatory training. The club was required to install a video surveillance system that meets prescribed requirements.

The LGCA suspended the club’s licence from April 3 to April 5 for breaching a compliance order between October 2025 and January 2026.

Meanwhile, a south Winnipeg nightclub’s age-restricted liquor service licence was twice temporarily suspended by the LGCA for breaches in May 2025 and January 2026.

Obsidian Ultra Lounge twice violated a special term and condition restricting Qizheng (Leon) Yang’s business involvement, the LGCA annual report said. One suspension lasted two days and the other four days.

Yang operated Obsidian when his liquor licence was cancelled and he lost an appeal in 2024. The club racked up an unprecedented 14 strikes against provincial rules in a five-year span, an appeal panel heard.

Obsidian was the second Manitoba nightclub to have its licence cancelled since the province’s current regulator formed in 2014.

The final strikes included being over capacity and overserving alcohol to customers.

Obsidian reopened under the same name in late 2024, according to social media posts. Yang told the Free Press in January 2025 the club had a new owner and he was not involved in the business.

The LGCA imposed a special condition stating Yang cannot benefit from the operation of 10186323 Manitoba Ltd., operating as Obsidian Ultra Lounge, when the numbered company took over and obtained a new licence.

Yang cannot hold a position or role such as principal, employee, manager, contractor, promoter or entertainment provider.

He had the keys to the building and access to the office when LGCA inspectors visited in May 2025 and January 2026, according to documents obtained by the Free Press.

After the latter breach, the director of the company that runs Obsidian told inspectors he asked Yang to open the bar that evening, a document stated. Neither breach was appealed.

chris.kitching@freepress.mb.ca