Back in December 2015, undercover officers were able to purchase cocaine from staff at the strip clubs, who were also observed openly taking the drug. In an executed search warrant on 19 December last year, police also found 17 bags containing suspected drugs at Dreamgirls.
OLGR has also said that outlaw motorcycle gangs had been allowed access to Bada Bing - a breach of King Cross requirements - and that sufficient protection was not in place to stop strippers from being physically assaulted by patrons.
"The authority is satisfied serious breaches of the Liquor Act have occurred or are likely to occur and that the long term closure of the premises is necessary to prevent or reduce the risk of a serious threat to the public interest arising from the use, possession and supply of prohibited drugs on the premises", OLGR said in a statement.
Dreamgirls was closed on February 1 and Bada Bing on 31 January. Authorities have said that both venues will only be permitted to reopen if stipulations are met after six months.
"The authority has ordered Dreamgirls be closed for six months...or until persons acceptable to the authority are confirmed as the licensee and/or approved manager; a suitable venue drug control policy has been provided; and that building works and CCTV coverage designed to restrict and monitor access to level 1 of the building is completed", OLGR said.
Bada Bing must also appoint persons deemed acceptable to the authorities to manage the premise and will need to implement a venue drug policy with NSW Police. In future, the venue will be unable to employ staff with prior liquor or prohibited drug convictions and must not permit access to patrons to Level 2 of the building or an internal stairway that connects levels 1 and 2, where constant surveillance from CCTV cameras must also be implemented.
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