We know that there were some who argued that it was better for men to use Jewish (single) prostitutes so that they not come to having sex with married women or engage in homosexual acts. (I am referring to places where Jews could not avail themselves of non-Jewish prostitutes, as the punishment for this was often execution.) R. Moses Hagiz argues against this position, stating that we do not permit a lesser offense to prevent one from violating a more severe offense. He even calls this approach hukot ha-goyim
והלכו בחוקת הגיום שזו היא טענת פטור אצלם אכן אנו בני ישראל הקדושים כשהשני איסורים הם מדאורייתא או תרי דרבנן אין לנו להתיר הא’ מחשש שלא יבא לעשות האחר
This passage is quoted by R. Isaac Lampronte, Pahad Yitzhak, s.v. boel aramit. He then adds that he heard from a hakham that sex with a Jewish prostitute is worse than sex with a non-Jew because of the possibility that that one will violate the niddah prohibition. Notice how he doesn’t say that one will certainly violate the niddah prohibition, only that it is a possibility. What this means is that even the Jewish prostitutes were expected to go to the mikveh, but that one can’t assume that they would indeed do so, and this explains why sex with a non-Jewish woman is preferable. But he adds that this should not be said publicly or to an ignorant person as this knowledge could lead men to have sex with non-Jews since they will mistakenly conclude that the prohibition is not so serious
What we are discussing was not simply theoretical since R. Isaac Arama, writing in fifteenth-century Spain, tells us that not only did the Jewish community leaders not take prostitution seriously, but in a few communities Jewish prostitutes were welcomed and even supported with Jewish communal funds (!). This was done as the prostitutes were thought to be performing a public service, since without them it was thought that men would be led to have sex with married women or non-Jewish women (which as mentioned already could lead to execution). From a responsum of R. Judah ben Asher, we see that even in an earlier era this point had been made with regard to “loose women” (and was rejected by R. Judah who thought it was better to have sex with a non-Jewish woman for whom the niddah prohibition did not apply)
Arama tells us that on different occasions he argued with the communal leaders, and also before their rabbis, that it is one thing if someone commits a sin in private. In such a case, Arama would probably agree that it would be better for a man to have sex with a Jewish prostitute than with a with a non-Jew. (It must be that these prostitutes went to the mikveh, as Arama doesn’t mention anything about the niddah prohibition.) But Arama is firm that it is absolutely forbidden for the community – and he includes in this their beit din showing that the rabbis were complicit – to countenance any sin whatsoever, in this case welcoming in Jewish prostitutes, even if this strict stance leads to people committing greater sins or being executed by the non-Jews
R. Isaac Bar Sheshet (Rivash) had earlier also testified to the fact that the “gedolei ha-dor” had acquiesced to the existence of Jewish prostitutes in order to prevent men from visiting non-Jewish women, with all the dangers this entailed
Jewish prostitutes definitely felt that they were part of the community. See R. Raphael Ankawa, Karnei Re’em (Jerusalem, 1910), no. 225, for a responsum sent to Brazil, regarding whether it was permissible for the synagogue to accept charity from the prostitutes, as well as a parochet they made for the synagogue. See also R. Moses Isserles, Shulhan Arukh, Orah Hayyim 153:21. R. Raphael Aaron ben Shimon, Nehar Mitzrayim (Alexandria, 1908), vol. 1, p. 12a, discusses a case where not only did the prostitute donate a parochet, but she also inscribed her name into it in golden letters. As R. Raphael notes, this is especially problematic since if allowed then people praying in synagogue would see her name staring down upon them and this would invariably lead to improper thoughts. (He adds that this particular prostitute had been with a lot of the young Jewish men.) Therefore, he ruled that the parochet could not be used and any gifts from prostitutes to the synagogue could not have their names on it. He also mentions a prostitute who donated a sefer Torah to the synagogue (!), and this was accepted on the condition that her name not appear on it. On the other hand, in 1611 the Prague Jewish community ordered the Jewish prostitutes to leave. See Simhah Assaf, Ha-Onshin Aharei Hatimat ha-Talmud (Jerusalem, 1922) p. 114. Any prostitute found plying her trade after this time would have a mark of shame branded onto her skin!
Pimps also felt that they were part of the community. See R. Joseph Hayyim, Rav Pealim, vol. 2, Orah Hayyim, no. 18, who rules that it is forbidden to give a pimp an aliyah, even if he only deals with non-Jewish prostitutes and non-Jewish clients. R. Hayyim Palache ruled that pimps must be expelled from the Jewish community. See Masa Hayyim, p. 14a. R. Solomon Kluger discusses Jewish pimps in Ha-Elef Lekha Shlomo, Yoreh Deah, no. 192, and see also R. Hayyim Palache, Hayyim be-Yad, no. 19, and R. Hayyim Hezekiah Medini, Sedei Hemed, Pe’at ha-Sadeh, ma’arekhet alef, no. 152