BYOB in NYC

According to Eater, my new neighborhood gastropub, EU, having failed to get its liquor license, has now been barred even from operating as a BYOB: the full story is unclear, but it seems as though the police busted the police for having any liquor at all in the establishment, even if it wasn't served by the restaurant itself. Thus are my dreams shattered.

But Eater raises an interesting question: are any NYC BYOBs, strictly speaking, legal? Do the police just turn a blind eye, or is there some kind of BYOB license one can/should get?

UPDATE: Eater has all the answers.

Posted by Felix at 23:09 EST