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No, they were not getting paid. Visa waivers are what is required for non-paid performances.
Italian Band Soviet Soviet Denied Entry To The U.S., Jailed And Then Deported : The Record : NPR
I'm guessing that if the band were booked into similar unpaid performances in Branson, MO, to sing at religious events, they wouldn't have been handcuffed and jailed and then deported. No proof of that. But I think that's a good guess.
They were playing for profit events. They admitted that. Because of that, they didn't have the proper visa.
I bet weren't planning on paying any taxes, either.