Police say they arrested 14 people on suspicion of running the organization and another 17 alleged prostitutes for being in Spain illegally.
A police statement today says the men were recruited in Brazil and saddled with debts of up to €4,000 ($5,000) as the cost of bringing them to Spain.
The gang provided the men with cocaine, Viagra and the club scene drug known as "poppers" so they could be available for sex 24 hours a day.
The police statement said the arrests were made in recent weeks and the alleged ringleader was based in Palma on the Mediterranean island of Mallorca.
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