The incident happened at a west end male strip club in June 2009, where full-time social worker Domenic Antonelli danced part-time, the Toronto Sun reported.
A 33-year-old woman who was celebrating her upcoming wedding with girlfriends paid Antonelli for a lap dance and then went into the club's basement and had sex with him, court was told.
The woman testified she had been abstaining from sex for months as her fiance was a fundamentalist Christian.
The dancer was later charged with two counts of sexual assault and was suspended from his social work jobs, the report said.
Court also heard after the alleged rape, the woman repeatedly hugged and kissed Antonelli, posed for suggestive photos with him and then accepted another lap dance from him.
Judge Susan Himel told the woman she found her testimony "inconsistent, implausible and incredible" and dismissed the charges.
There was no immediate indication if the woman accuser would be charged with filing a false police report or face civil litigation.