hidden cameras

If there has been any blackmailing, it hasn't been made public. Actually, it would be stupid for a club to use that footage for blackmail as someone would call the cops (for revenge) and the club owners/operators would find themselves in deep dark doo doo for:

soliciting prostitution
promoting prostitution
extortion
money laundering

and in this era of extremely zealous prosecutors, the prosecution would find a way to work in sex trafficking. So, even with plea bargaining, we're looking at 10-20 years (except in California-child rapists get probation, murderers get three years, go figure).

I think these cameras are just to make sure that the club's rules are being adhered to or to "protect" the dancers...that's it...

How would they blackmail you? They don't know your name, address, phone number, etc.

There are 5 hidden cameras in my favorite club. 4 in the main stage room and one one on the parking lot. None in the private dance rooms. The location of these cameras has been pointed out to me by a reliable dancer. The monitors are in the managers office. Since the dancers must check in with him upon arriving and leaving they have seen what is being looked at. Video tapes of illegal activities could be used against the club in court. So why film anything that could bite you in the ass?

Maybe the manager is trying to monitor and stop drug trafficing. I've heard about coke being sold in the VIP. If a manager sees it he can protect himself. It also helps to have videos of cops in the VIP for blackmail or to fight a bust.

Yes, drug trafficking is a big concern to club owners but in my experience most of this goes on in the dancers dressing room. Which is unmonitored.

Some clubs force strict adherence to the rules, so we know what they are there for. On the other hand, some clubs do not always enforce their rules. I think its basically just for show, on the off chance LE shows up.