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Sex industry is rather developed in Latvia, although the myth about Thailand on the Baltic shores and cheap sex widely available is a considerable exaggeration.
Unfortunately quality sometimes can be very variable and there are a lot of scams to avoid. Also in some hotels you can discreetly ask for the receptionist about escort services and they will make a call for you. There is no specified Red-light district in Riga like the ones in Germany and Amsterdam which have a window prostitution areas.
It's possible also to hire a webcam model to a private chat room where you can ask the person to fulfill your fantasies.
There are some nice places for adult fun, but Riga escorts are probably more popular among mongers.
Mostly the street prostitution and sex clubs in the old town has been cracked down on big time and has been almost wiped out.
Although prostitution is technically legal in Latvia, the many restrictions effectively nullify it.