It's fucking stupid to think that would be enforced in an AVN anyway. Might as well get rid of all the underage drinking too, dumbass
Alright, so let's say the no-touching law isn't enforced (which is a stupid one anyway), another law that I'm pretty sure WOULD be enforced quite strictly (if they put in any checks anyway) is the minimum age of 21 to be allowed to perform. Lily might be 21 now (if she's not younger), but we know she has been stripping for quite a while. That would almost certainly mean she started when she was below legal age for Ohio.
If we're going to try to find out where a game in the real world takes place, we can't just pick and choose what real life facts are and are not converted into the game. It's either all or nothing.