He argues the law is so vague it would apply to an art gallery offering wine near Michelangelo's David and that the state used it to intimidate the theatre.
Lawmakers and the governor have supported the law in the conservative state where politics are dominated by Mormons whose faith teaches avoidance of alcohol.
The case caught the attention of Deadpool star Ryan Reynolds, who donated $5,000 US to help pay the theatre's legal bills last year.
The state is reviewing the ruling and considering its options, said Dan Burton, a spokesman for the Utah Attorney General's Office.
The 2016 complaint against the theatre came under a law generally used to ensure strip clubs that serve liquor keep dancers wearing G-strings and pasties.
Utah argued that Deadpool violated the law because the movie includes nudity and simulated sex, including a suggestive scene in the film's credits involving a cartoon unicorn.
It shows the same movies that other, non-sexually oriented movie theatres show but with alcohol.". »
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