Hey! You can only dance in the designated zone, which is indicated by red ribbons, on the top left corner of the map. You cannot dance on the dance floor, because you are a bouncer and cant be seen doing that.
Hmm, I tried playing the game right now, and it works fine for me. You can dance in the area that I have highlighted with a white square. You will also get a prompt at the bottom of your screen that says press space to dance. You should be able to dance then.
