Two former operators of Dreamgirls strip club in Kings Cross have been banned for life by the Independent Liquor and Gaming Authority (ILGA) from holding a liquor licence and managing a licensed venue.

Mr David Lakepa and Mr Michael Amante were convicted in court in May this year for operating an unlicensed bar at the strip club, as well as for drugs being used and sold on the premises.

Mr Lakepa was the licensee and Mr Amante the business owner of the venue at the time of the offences. Both were fined $7,000 and ordered to pay $1,500 in legal costs by Downing Centre Local Court.

ILGA has now issued lifetime bans and ordered Mr Lakepa to pay $10,005 in investigation costs and Mr Amante $14,060.

Deputy Premier and Minister for Justice, Troy Grant, delivered a hard line regarding the decision.

“Our independent umpire is ensuring bad seeds are weeded out of the industry in an efficient and fair manner, making nights out safer for the community," Mr Grant said.

“Most venue operators do the right thing and follow the rules and for the few that don’t, there is a strong independent regulator waiting to throw the book at them.”

The decision comes at an interesting time as the NSW Government considers its decision regarding the state's lockout laws, following the release of the Callinan report. The lockout laws were originally introduced as a response to drug and alcohol-fuelled violence in areas such as Kings Cross.

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