Yes you can get cameras in plenty things, it's 2017.
Several ways to minimise something like this happening, when they take off their clothes hang them up in a wardrobe for them and close it, or fold them onto a chair, when I am doing hotel incalls I always pop their clothes in the wardrobe just out of politeness.
You could always ask the clients to take the smart watch off and explain why, he may be using it to track the calories he burns in sex lol, I do this with my Fitbit sometimes!
I think if they were using their watch to film they may be doing movements with their hands to get the view which may seem strange, if they are genuine and have nothing to hide they shouldn't have much of a problem taking it off and putting it on the side because of your suspicions.
Also don't leave clients alone in the room. Of course there may be someone out there who's done this or will do this but in my opinion I think it's more likely a client will use a phone slyly to do it and not a watch which is much much more obvious. X