Don't most CD burning programs give you an option to copy a CD, so the copy is of the same type as the original?

Anyway, certainly don't rip to MP3, and even if you RIP to WAV, make sure the copy is an audio CD and not a computer CD, because it's quite possible to make a CD-ROM with .WAV files on it which also isn't readable by a normal CD player.

As for legality, most CDs come with a notice prohibiting unauthorised "public performance", which means your dance club may be infringing a copyright notice before you even start making copies.