Liquor watchdog rejects police bid for facial recognition and dance floor caps at Newtown pub

The Marlborough Hotel, a live music institution on King Street that has traded since 1860, will not be required to introduce AI-driven surveillance or limit dancers to one per square metre as police had sought. The police application detailed 93 alleged serious incidents at the venue between 2020 and 2025, including assaults, sexual touching, drink spiking and resisting police. Officers argued the venue accounted for almost one in seven alcohol-related incidents across the broader King Street precinct over five years, and that repeated engagement with hotel operators had failed to deliver lasting improvements.

In its decision, the ILGA disciplinary matters committee chair Jeff Loy found there was limited evidence to support a capacity cap and that it would be “impractical to enforce”. The authority also rejected the use of facial recognition technology, concerns about which had been raised by venue operators, privacy advocates and City of Sydney councillors in a submission warning the measures could deter members of the LGBTQ community from attending and create “an atmosphere of institutional surveillance rather than social enjoyment”.

Loy found some additional safeguards sought by police were justified during high-risk periods: a post-midnight ban on shots and drinks containing more than 50 per cent spirits, and a strict two-drink purchase limit per patron.

Deputy Lord Mayor Jess Miller said the proposed conditions would have devastated the venue and completely undermined the NSW government's nightlife vibrancy reforms, which aim to rebuild Sydney's nightlife after years of venue closures prompted by former lockout laws. Newtown Greens MP Jenny Leong welcomed the decision, saying questions remained over how biometric information would have been collected, stored and monitored. “We need a vibrant, welcoming nightlife, and there’s nothing more likely to dampen the party than having Big Brother tech watching over you on a dance floor,” Leong said.

Lawyers representing the venue argued police had overstated the number of incidents and current risks, noting the hotel already operates 75 CCTV cameras, body-worn cameras for security staff and an entry fee policy that refuses an average of 1800 people each year to help reduce intoxication. They said the proposed dance floor cap would have cut capacity from 200 to 70, made live gigs economically unviable and triggered the termination of 15 casual staff.

NSW Police in a statement said it accepted the ILGA decision and “will continue to monitor” the venue. The decision comes as facial recognition technology is gaining a foothold inside major retailers to curb antisocial behaviour and inside NSW gaming lounges under harm minimisation reforms introduced by the NSW government.