"I am pleased to report that the charges against my client have been dismissed in their entirety," Daniels' attorney Michael Avenatti tweeted.
Daniels had posted $6,054 for bail and was released Thursday morning. She was due to be arraigned Friday. A court document said because Daniels does not regularly appear at the club, as required under the law for such an offense, the charges were dismissed.
Avenatti had said the arrest was politically motivated and "reeks of desperation."
"Just received word that my client was arrested in Columbus Ohio while performing the same act she has performed across the nation at nearly a hundred strip clubs," his tweet read. "We will fight all bogus charges."
Ohio law says a person who performs "nude or seminude on the premises of a sexually oriented business" are not allowed to be touched by patrons. A violation is a misdemeanor.
Avenatti tweeted Daniels was arrested for "allowing a customer to touch her while on stage in a non sexual manner."
"Are you kidding me?" he asked. "They are devoting law enforcement resources to sting operations for this? There has to be higher priorities!!!"
Daniels' attorney told NBC News there were multiple undercover vice officers in the club during her show and after the customer touched her, officers arrested her on the spot.
Daniels claims an affair with Trump in 2006 while he was married to Melania Trump. On the eve of the presidential election, Cohen paid Daniels $130,000 in exchange for a non-disclosure agreement.