Aren't they just claiming they don't have sex, because then it would be escorting and illegal?
Pretty much.
Gotta remember that older guys that have lived fully and got $$$$$ aren't always into sex. They enjoy the companionship and don't mind spoiling a young broad with money. She barely has to smash if at all. A little sloppy top once in a while and he'll buy her a house, car, pay for college and all the designer clothes/bags/shoes she wants.
Problem is that MOST sugar daddies ARE NOT like this. It's mostly middle aged tricks that want a discount on the box. A legit professional escort knows the game and understands the transactional nature of sex. Most sugar babies don't understand the game so they end up getting $1,000/month thinking they are winning....but Mr. Middle Aged trick is smashing 2x/week, maybe 3x/week. So he gets 10 sessions per month...or $100 per meetup. If she was just a regular escort....it would be like $250, $300+ per meetup.
She got played because he gave her a nice chunk of change upfront but she's actually losing at least $150 every time she fukks dude.
Most sugar babies want easy money but you have to be dime status to pull that off....fine enough that a dude would just be happy to be around you AND has enough money that you can see him exclusively.
Also, sugar babies tend to be regular women that don't understand sex work....so they apply the rules of normal dating to the marketplace. Amit, the nerdy 25-year old software engineer making $250k/year? He would never have a chance with Becky The 7 in the dating world but in sugar/escorting, he can ALWAYS find another woman that will do more for less. Escorts are humbled and understand but regular broads aren't ready for that wakeup call.