"This is alcohol"
And
"Or maybe it isn't alcohol."
Or to rephrase it, "They tell you the rules at the entrance, they then tell you they don't follow those rules and they are totally serving alcohol even if they are not."
You can decide you are okay with that or not but they aren't dishonest. I wouldn't enter that bar personally but if you do you cannot really complain. It is like complaining because you haven't won at the casino.