Bondi Bowling Club in eastern Sydney has been labelled the "worst venue to date" in NSW over COVID-19 health breaches and hit with a $10,000 fine.
Liquor and Gaming NSW said in a statement on Saturday that inspectors visited the Bondi venue on August 29 and found multiple groups of more than 10 people, patrons freely mingling and drinking and no social distancing in bar queues.
They also said dirty cups and plates were left on tables and sign-in processes were lacking.
"We are still on a cliff edge but you wouldn't know it if you went to Bondi Bowling Club on August 29. The venue was operating as though the COVID safety measures were optional," Liquor and Gaming compliance director Dimitri Argeres said.
"This presented a pretty grim picture of patrons and staff who are simply ignoring the restrictions everyone else has to live with and putting the entire community at risk."
The club was hit with two $5000 fines over the breaches.
In a statement on Saturday, the Bondi Bowling Club's directors admitted its crowd-management protocols had fallen short and regulations had been breached.
"The wellbeing of (our) members and our guests, plus our responsibility to the local area, has been the highest priority during the COVID crisis," the directors said.
"The club has since reviewed procedures to ensure that best practices are implemented as a COVID-compliant venue and to provide a safe environment for members, guests and staff."
The Bondi Bowling Club's fine comes as NSW authorities establish an online COVID safety feedback portal to dob in venues that are not COVID-safe.