" I was really surprised to see The Outlaws sporting their colors"
Although I do not know the City of Daytonas's laws or ordinances, there may not be anything against wearing colors on the streets.
The issue/violation is when any motorcycle club wears their colors in the bars.etc.
That also includes Christian clubs, Police clubs, ABATE, essentially all clubs who wear colors.
I can explain it to you, but I can't understand it for you.