It seems that all contact strip clubs ($10 dances) are illegal in Quebec as of this summer.
Long story short: In November 2003, strippers, bouncer, and client are arrested for being in a regular contact strip club in Laval. No one was naked, or having sex: they were engaging in the common "grinding dances".
They were all found guilty in municipal court on October 3rd, 2007. This decision was appealed to the Quebec Superior court, which rejected the appeals and confirmed the convictions on January 6th, 2009 (1). This decision was then appealed to the Quebec Appeals Court, which (in a 2-1 split decision) rejected the appeal and confirmed the convictions on June 15, 2010 (2). It seems that this decision has not been appealed to the Supreme court of Canada (3), and the time to do so has lapsed.
Bottom line: In Quebec, most/all strips clubs (except Wandas?) are now illegal. And unless the constitutional Charter challenge to the core anti-prostitution laws is successful in British-Columbia, they will remain illegal.
Ironically, this pretty much leaves outcall prostitution as the only "legally safe" sexual thing to do.