I'd imagine that having the power to close down anything, if even a single case of someone using an illegal drug could be proved, would give the authorities a free hand to apply it as and where they want. Obviously they couldn't apply it uniformly, or there wouldn't be a venue in the country that could stay open. Arbitrary power.

Sounds like a great moneymaker, and opportunity for backhanders. But I'm still puzzled how this could be a federal matter under your system. It doesn't involve taking things across state lines, or anything like that.