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UW: most swing establishments have trouble with various "bawdy house" laws. Many try to get around it by having parties at "private houses" and accept a fixed donation, rather than charging admission. Most also do it by having no commercial activity on premise, so no liquor sales or anything like that. While in theory sex should be open and free, once you start to charge for access to actual sex, then you are running close to or slightly over the line.
Most "public events" in the BDSM community that I am aware of impose a very strict no sex policy, and even some have agressive "no naughty bits" rules as well, making sure that none of those parts get out where people can see. (I shot some live performance stuff at a club in Montreal, very... kinky).
When I see someone playing the "donation" game, I know that they are either (a) avoiding tax, or (b) trying to be cute and avoid getting arresting for being a hooker. In the case at hand, it could in fact be both (or neither).
Alex
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