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It's because they don't know what they're getting into, and will also spread the disease to others. They're stupid, both in an objective sense and also subjectively in terms of their future preferences. Rational agents wouldn't use the syphilis brothel! A nation made entirely of intelligent and rational ideal agents would've already fully eliminated every STD of significance by at first spontaneously agreeing to, and then nationally coordinating, a set of practices for testing and condom use. It's not actually a difficult problem if everyone involved can consistently follow simple rules and tolerate minor modification to their behavior in the long-term interest of the group. They can't, though, and sex seems to make people deviate from theoretical rationality an awful lot more than usual (or, in terms I prefer - be retarded), so the state should step in.
Oh I understand that there will be negative consequences from such a prestigious establishment plying its trade. However, I am libertarian adjacent enough that I don't think the State should be in the business of demanding its citizens engage in nothing but "optimal" behavior (which is inherently subjective).
I would personally prefer that it attempts to price in externalities, and mainly stick to ensuring truth in advertising.
Freedom, without the extension of the freedom to make bad decisions isn't much in the way of freedom after all. What principled reason is there for the government to stop people from getting syphilis willingly when they aren't allowed to force you to jog every day or eat your veggies? What I personally seek to minimize is the harm to others who are indirectly affected, say by the new syphilis aficionados spreading the disease to them.
If, for example, this was the case in a nation with nationalised healthcare, I fully endorse the government imposing heavy fines on the clap trap, which they are free to pass on to customers via their pricing. I would rather see the fines capture the costs of externalities rather than be intentionally punitive or intended to make it impossible to operate at any cost.
You might even deny people who are so fundamentally retarded access to free healthcare, but I still consider that they should have the right to be retarded.
What is utterly unconscionable and deserving of severe punishment, at least in my eyes, is involving people who didn't make informed bad decisions, such as lying to customers even through omission, presuming they expect prostitutes with the normal risk of giving them syphilis, or the fine purveyors of that establishment who hide their own condition from other partners.
The sanity waterline as it exists today more laps at the toes of such intellectual titans than it dampens the crotch of the average human :(
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