A 5000 dollar COVID-19 infringement penalty was handed down to a licensed premise on Faulkner Street, Armidale on Monday 20th July.
Police received a tip-off on Friday 17th July in the evening and then attended the venue to investigate further.
After entering the venue police allege 40 people were gathered in a room only allowed to hold 10 people under current social distancing measures and the 4 square metre rule.
New England Police District Commander, Superintendent Scott Tanner said, "Whilst it is the responsibility of licensed premises to ensure patrons comply with Public Health Orders, the public have to understand they’re putting those premises at risk and they may also be held liable".
Police are continuing investigations into the actions of individuals found to be flouting social distancing measures.