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The Black Angus was a bar and strip club with an illegal brothel out back, and was raided from time to time, although you are correct that the authorities pretty much turned a blind eye for years. But Governor Rosselló closed it down for good about 4 years ago, and they actually tore down the place. I'm sure there are other strip clubs in Puerto Rico where prostitution takes place, but I don't think any state of the union is completely free of prostitution. The point is, prostitution is illegal in Puerto Rico, as is sodomy and adultery, and as was abortion until Roe v. Wade struck down the law.