A tipping device for dispensing a tip from a patron to a performer, such as in an adult dance venue, generally comprises a transaction apparatus including a money receiver at a first location for receiving money for the tip from the patron and a tip dispenser at a second location for dispensing the tip into the air so as to create an entertaining effect. The tip dispenser may be suspended by a winch above the performer. Preferably, the tip is dispensed out of reach of the patron at the first location and such that a patron at the first location may see the performer while the tip is being dispensed. The tipping device may include a spotlight or flashing lights for highlighting the patron during dispensing of the tip.
