Daniels, who was semi-nude, allegedly touched some of the patrons' breasts and allowed them to touch her, according to charging documents obtained by ABC affiliate WSYX.
The state of OH moved to dismiss the case because it did "not have probable cause to proceed on any of the three charges set forth in the complaints", according to scanned court documents that Avenatti posted to social media.
Daniels has said she had sex with Trump in 2006 and that Trump's personal lawyer, Michael Cohen, paid her $130,000 to keep the encounter secret shortly before the presidential election.
U.S. media tweeted a mugshot of Ms Daniels, purportedly from the Franklin County Sheriff's Office in Columbus. Then-Governor Ted Strickland, a Democrat, allowed the law to take effect without his signature despite a Statehouse debate that included young women in pink "Dancers for Democracy" shirts opposing the effort, the Columbus Dispatch reported. She was charged with three misdemeanor counts of touching a patron at a "sexually oriented" business. He said he has been talking with "reasonable" prosecutors all morning and Daniels will leave the state of OH within the next several hours.
Avenatti said that undercover vice officers arrested Daniels after she was touched by the customer. "Are you kidding me?" he wrote.
In a telephone interview with the New York Times, Avenatti expounded on Daniels' arrest. Police said they routinely conduct such undercover operations.
He added, "They are devoting law enforcement resources to sting operations for this? There has to be higher priorities".
They say Daniels is not subject to a state law that prohibits anyone who isn't a family member from touching a nude dancer, because it only applies to someone who "regularly" appears at a jiggle joint - and she was a guest, according to court papers tweeted out by her lawyer Michael Avenatti.
Daniels has sued the president and Cohen, seeking to nullify the nondisclosure agreement.
Stormy Daniels' lawyer says the porn actress is "traumatised and rattled" after she was arrested.
Earlier this year, Daniels filed a defamation lawsuit against Trump. The strip club where she reportedly performed, called Sirens, also declined to comment when asked about the matter.