There is a couple in my town that offers to put on a sex show for $200/hr at their incall place.  You're not allowed to touch, just watch, but you are encouraged to service yourself.  

Is this illegal for them or me?

The number of laws on the books that could be used to cover something like this is unknown, but I assure you there is something!  

I might suppose that you are still offering money for sex, you just don't happen to be the one getting laid!  

MVR

They have legal  "live lingerie modeling"

The lady wears garter belt,hose, heels(otherwise she is  nude) dances to music in a private room for the modeling session.
The patron sits in a recliner & may make himself comfortable yet NO physical contact is allowed.

The OP scenario is clearly more on the edge , You have to check the specific law regarding that activity.

Remember you get arrested in some areas just for a blind date (no money & no sex) IF you have the bad luck of crossing paths with LE

What law could you possibly be breaking by going on a civvie blind date?

though unfortunate story for Cathy that we all hope has a happy ending or at least the best ending as possible.

If you search back about a year you will find the narrative.

poor Jackie in Fla was arrested for basically "flirting".

Thank you for thinking of me, it has been an excessive waiting period, I am told it should be resolved in my favor soon.

Yes, Cathy is correct.  I showed up, flirted with a very handsome young man and got popped!  If you look at the post entitled "another mess in florida" you will find all the gory details.

Since my arrest, I have gone on a few "vanilla" dates, you know the real kind...and I am finding myself paranoid.  Thinking "am I and this man going to be arrested".  This experience has been hell for me.

Cathy you're a godsend to me!  Thanks for all your wonderful advice.

I totally understand the paranoid thing,
I thought of  possible  "non-crime" activities
that could get an innocent person arrested based on what is going on with LE & stings

meeting for coffee, reimbursing for travel expenses,hanging out ordering a pizza,a giggle at a PG rated joke,dog sitting,selling your couch etc...
and the best one "cops have mind reading ability."

I bet if you go check out what ladies set up for stings  you will get a large amount of "attractive women" based on vice cop's personal preferences rather that suspicious activity.

I did wonder why certain women were called.  

I went back to the sites where I advertised, just to see who else had an ad posted and didn't get busted and wondered why?  Were they more cautious than me?  Were they not called?  

What made the cops choose me over them?

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A friend was lending me money for my attorney and we met at a coffee shop...he didn't think anything about handing me money right there.  I nearly fainted!  Of course, in my paranoia, I thought the cops were watching...of course they weren't.  But in that instance and now knowing how the cops think...I (and him) could have gotten arrested, if a cop had a bug up his ass.  This has changed my entire life....

every state has it's own laws but most of them define any lewd and/or laviscious behavior in exchange for money as prostitution.

in Georgia, they have "live Lingerie modeling" the guy gets off (no physical contact) As the lady dances in garter  belt, hose, heels.(knew 2 ladies that there)

I agree w/ Jackie about this ridiculous nonsense,

I got my first ever massage for back pain today .
It was miserable, as  I was so worried
that I would get arrested.
I got a massage fully dressed.