Racoon says that the gigolo guy wanted more blackmail $$$ from Spacey which he probably has been paying for years. That's exactly what we believed too. Spacey said "no" and the guy went public. 
Spacey is a very talented actor but it does not look good for him at the moment. People haven't forgotten about director Roman Polanski, for example, and his behavior with underage girls from years ago and it is still talked about, so I wonder if this will be forgotten or not in a year or two. Only time will tell.