Daniels, whose real name is Stephanie Clifford, was performing at Sirens, a strip club in Columbus, when some of the club's patrons touched her in a "non-sexual" way, Avenatti told The Associated Press.
Stormy Daniels is pictured during an interview with Anderson Cooper about her alleged affair with Donald Trump.
Avenatti called the arrest a setup, politically motivated, and said it - quote "reeks of desperation". "We will vehemently contest all charges".
"They are devoting law enforcement resources to sting operations for this?" There has to be high priorities!
Avenatti said Daniels was performing the same act on Wednesday that "she has performed across the nation at almost a hundred strip clubs".
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An Ohio law known as the Community Defence Act prohibits anyone who isn't a family member to touch a nude or semi-nude dancer.
She was booked and released early Thursday morning on a $6000 bond.
When reached by CNN, Avenatti confirmed that the information he tweeted is accurate. The club, Sirens, advertised Daniel's appearance on Twitter ahead of Wednesday night's performance. A person who answered the phone at the strip club declined to comment.
Through White House officials, Mr Trump has denied the affair, although Mr Cohen has admitted paying Daniels as part of the agreement.
While Cohen's carefully worded statement said the Trump Organization and campaign weren't involved in the payout, it conspicuously did not rule out Trump's involvement.