WFAA also reported that Hudson has a criminal history that includes two arrests for marijuana possession and one for unlawfully carrying a weapon. The station reported that he pleaded no contest to all three charges and is serving probation.
Hudson, who owns both businesses, initially registered The Playground as a church when he applied for the required certificate of occupancy, city officials said. When they inquired about the DarkSide, he told them that it was also religious in nature.
City officials said they were surprised the DarkSide was a permanent rave site, as most parties move from location to location. They allege that the club held dance parties as late as 8 or 9 the next morning.
"Detectives consistently observed and documented numerous patrons openly ingesting and under the influence of illegal substances, dancing, engaging in various sex acts," alleges the lawsuit.
Dallas city ordinances require a license to stay open after 2 a.m. and with a special permit they can go until 4 a.m., but with no alcohol permitted.
DarkSide's manager, Thomas Eppelsheimer, also known as "Tommy Gunn," was arrested in July on charges that he supplied drugs to minor females and sexually assaulted one, according to the lawsuit.
Since then, he has been fired, according to WFAA.
Although the city attempted to close DarkSide permanently, a judge denied the order and has allowed the club to stay open for business.
A hearing is scheduled Aug. 3 in Dallas County's 95th District Court to determine if the city can shut down both clubs permanently.
In the meantime, Hudson still maintains that his constitutional rights are being violated.
"First Amendment, freedom of religion," he told WFAA.
He claimed he was being sued "just because they don't agree with what we believe in."