Desire Within

I was looking for a place to have a drink on my way to the airport and stopped in this place. Ok, I go in and there are 3 girls standing there in... i can't really call it underwear or lingerie.... it looked like they made it out of their pantyhose. after receiving no information without "picking a girl and going in a room," i finally got the 4-11 on this joint: $100 for touching & $500 for whatever I wanted to do. Isn't prostitution illegal in arizona?