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Generally, this is determined on a county level. For example, in Winnebago County, IL, topless dancing prohibited in businesses which serve alcohol. Otherwise, permitted businesses with topless entertainment are allowed. Reference

For example, in Chicago, "The court found that the ordinance "permits venues to offer nude and seminude dancing, and such establishments operate lawfully in the City featuring performers who wear even less than the dancers at Pooh Bah's club. The only thing the City does not permit is for the two activities to be combined on the same premises and at the same time. Such a restriction is within the City's authority to impose, for the first amendment does not entitle a bar, its dancers or its patrons to have alcohol available during a presentation of nude or seminude dancing." Reference

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