Examples of countries where brothels are illegal are Canada and most of the United States . Brothels are legal in some countries from Europe , for example . In some countries such as Australia , brothels are legal and regulated , however , the existence of these licensed brothels does not stop illegal brothels from existing : according to a report in the Daily Telegraph ( Australia ) , illegal brothels in Sydney now outnumber licensed operations by four to one ; according to a 2009 report , in Queensland only 10 % of prostitution happens in licensed brothels , the rest remains either unregulated or illegal ; according to some estimates , there are 400 illegal brothels in Victoria .