Yes, you're right. It is actually a tattoo. Caused a bit of grimacing and biting down on the towel no doubt. I believe the 'artistry' (schlong and all) will be featured on the next series of MTV's 'Just Tattoo of Us'.
I saw it this summer when it was warmer and it actually says... H o n d a R a c I n g C o r p o r a t I o n