More discussion of this with a friend:
You are correct, except that Jim and Artie did take those risks with their money and their business. Hubner writes about a Man on Woman Sex Show they put on for a private audience. That was 100% unlawful in a licensed retail business place. No allegation of prostitution would have to have been made. The brothers did it just because they like thumbing their nose at LE. This is also why when Dianne Feinstein was after them, they posted her home telephone number on their theater marquee. In her office she had a map on the wall of every place there had been a rape, and then of everywhere there was a "sex oriented business". Different color stick pins for each. She believed there was a causal relationship.
She kept changing her phone number, and the new one would go up on the marquee within a couple of hours.
Lots of swingers clubs are listed:
nasca.com
Most of them will not have anything like P4P going on, but there are exceptions which I have read of on Swinger's Boards.
And then while many prohibit "Swing Club Escorts", about the same number do not prohibit them. I feel that once they allow that, then onsite P4P will be likely, as will OTC P4P.
The most conservative of Swinger's Clubs use private homes. And then the club operator can get really tough with LE.
But others do use commercial buildings, more and more now. But they are not licensed as retail, "Membership Social Club".
Some have talked about such places that do have a "paid woman", who makes sure that every guy goes home with a smile.
Hard for LE to enforce in such a venue, hard to claim a public mandate, don't want to do anything which is going to make them look foolish in the news papers.
As Hubner writes, mocking the cops in the newspapers was a factor in every case Jim and Artie had. And from other sources, mocking cops was a factor in all the key legal challenges about gay liberation. That also has made it hard for LE to enforce on Massage Parlors in San Francisco. South Bay remains more conservative and more pro LE.
Swingers get into trouble at their big events in resort hotels. Anything where anyone could see it is Lewd Conduct. So they have to be careful. But not at a private home event or at a members event in a private commercial building.
amazon.com
The people who set this stuff up are not primarily motivated by money and I am sure there are not investors or incorporation.
SJG