The story of Joe Exotic is largely true. It involves actual incidents and characters, although some details might have been dramatized for entertainment purposes.
It depends on your perspective. Some aspects of the story might be based on real events, but there could also be fictional elements added for dramatic effect.
I don't think it's a true story. Usually, such names and tales are crafted by authors to capture our imagination rather than being based on real events. Maybe there are elements inspired by real life, but as a whole, it's probably not true.
It's a bit of a mixed bag. Some parts of the story are based on real events, but there might be some exaggerations or creative liberties taken for entertainment purposes.