According to the police report, vice officers reported to the strip club Wednesday night to investigate complaints about alleged drug activity and prostitution.
Daniels, whose real name is Stephanie Clifford, was expected to face a misdemeanor charge, Avenatti said.
Daniels, whose real name is Stephanie Clifford, was accused of touching three customers who were undercover vice detectives in the early-morning incident, police in the OH capital Columbus said in a statement.
There were a few weeks earlier this year when it felt like Stormy Daniels and her lawyer had a monopoly on the news cycle.
Reporter Tino Ramos said she refused to comment when asked.
Avenatti continued to call the incident a "ridiculous" and "absurd use of law enforcement resources".
Daniels was arrested in OH early Thursday on three counts of illegally touching a patron at a sexually oriented business, court records show.
Hispanic Unemployment Reaches Record Low, Media Praise Labor Force Rate
Nonetheless, at 6.6 million, the number of unemployed Americans could again be smaller than current job openings. That's tied with Florida (the fifth worst) for having the lowest unemployment insurance period in the country.
Stormy Daniels was arrested at an OH strip club in early hours of Thursday.
Mr Avenatti wrote: "This was a setup & politically motivated. It reeks of desperation", his tweet said. "We will vehemently contest all charges".
Just rcvd word that my client @StormyDaniels was arrested in Columbus Ohio whole performing the same act she has performed across the nation at almost a hundred strip clubs. He said his client was accused of allowing a patron to touch her while onstage in a "nonsexual manner".
The high-powered attorney claims the arrest was "part of a sting" based on a "puritan law" that says there is absolutely no touching in strip clubs in Columbus.
An Ohio strip club law prohibits all patrons from touching a nude or seminude dancer unless the patrons are members of the dancer's immediate family.
After posting bail and pleading not guilty on the charges, the charges against Daniels were dismissed Thursday afternoon.
Avenatti later released a statement from his client.
Avenatti also shared a statement from Stormy herself in which she apologized for not being able to go on with a scheduled show for Thursday night in Columbus. When they subsequently approached her, she allegedly did the same to two of the detectives, while reportedly touching the third officer as detailed above. Documents accuse her of fondling patrons In a probable cause affidavit obtained by CNN affiliate WSYX, detectives who were at the Sirens Gentlemen's Club said they observed Daniels remove her top and force patrons' faces into her chest.