About 30 police officers took part in the operation.
The seven people arrested include the owner and manager of the strip club.
Police say waitresses and dancers were also arrested for allegedly pimping and trafficking cocaine.
Charges in connection with operating a brothel are expected to be outlined on Wednesday in the city midway between Montreal and Quebec City.
Police say their investigation began in March and revealed that sexual services were being offered at the club in booths and private boxes.
The establishment has been shut down and authorities plan to seize the building.