Laser 20 in Willenhall was shut down last year after trading for less than 12 months amid the claims, which emerged in September.
A 41-year-old man from Manchester who was arrested at the time and remains on police bail. The building has been put up for sale earmarked as suitable for a housing development.
The premises, which is on Upper Lichfield Street, has never re-opened
and has since been targeted by vandals, who have smashed the front windows.
West Midlands Police confirmed the probe was still ‘on-going’. Seven officers were commended for their part in the initial investigation.
A spokeswoman said: “The man arrested is still on police bail, we have now submitted a file to the Crown Prosecution Service..
“We are waiting for a decision as to whether there will be a charge or not. The investigation is still ongoing.
“Seven officers from the Public Protection Unit and offender management received commander awards.”
Walsall councillor Carl Creaney, who represents the South Willenhall ward, said: “I heard a few rumours when it shut down but nothing since. It had gone very quiet.
“The windows have been put through in the property, since.
“My son used to go there quite regularly with his friends.
“He said they used to give a lot of youngsters free passes. Although he never raised any concerns.
“Whoever reported it I admire them for standing up.
“If it is true that type of thing can go on years undetected.
“I am glad to hear there has been progress in the case.
“If someone is charged and convicted it will mean Willenhall is a safer place.”
A trader in the area, who did not wish to be named, described the allegations as ‘shocking’, and said little was known about the business as it had only been open for a matter of months.
The property is currently advertised for sale for about £300,000, with an online listing describing it as a ‘residential development premises’.