Boys' Club

Can someone try to help me sort this story out:

In a decision that somehow managed to bring together karaoke, laser tag, exotic dancers and rabbinical consultations, a federal appeals court ruled yesterday that a lower court had erred in saying the College of Staten Island could not deny official recognition to a Jewish fraternity simply because all of its members were male.

...Beyond its limited legal effects, the ruling painted a rather unlikely portrait of Jewish fraternity brothers on Staten Island who both build sukkahs and frequent pool halls in their spare time.

...The panel went so far, in fact, as to use Chi Iota’s rush week of February 2003 as evidence against it. The judges wrote that although the fraternity claimed to find benefits in being exclusive, several events during rush week actually required interaction with what the court called “nonmembers.” Those nonmembers, it said, had been encountered at outings to, among other places, a strip club, a karaoke bar and a laser tag establishment.

At first glance, I thought that the reasoning behind the fraternity's preference of an all-male membership was religious (ostensibly to prevent fraternization between the sexes) - but the fact that the fraternity holds events in strip clubs would seem to be at odds with that assumption. So it seems that the all-male status of the fraternity has nothing whatsoever to do with its religious status. Which would make the fact that the fraternity is a Jewish one not particularly relevant to the story. Anyone have another interpretation?