He said neither the club nor the staff member was fined and the staff member remained with the club. The club's Norfolk Lounge Restaurant, which operates on a separate licence, would still serve alcohol. While drink was the third income stream for the club, behind the restaurant and pokie machines, the cost to the club "would be significant".
He said because it was the second failure to check patron eligibility it was "an extreme concern".
In 2010 its licence was suspended for seven days for supplying liquor to people who were not members or not legitimately signed-in as guests.
He said there was no sure way to protect against people who did not tell the truth about their status.The club had "a very good and long-lived reputation as a responsible host, apart from the two transgressions".
"Clubs are deemed to be in a privileged position and they have a range of people they are allowed to serve. If you serve outside that, there is a price to pay. We are taking our punishment on the chin.
"We have one of our biggest years ahead of us next year, with our 100-year celebration."
Clubs New Zealand chief executive Larry Graham said the Liquor Licensing Authority decision was "extremely harsh" but clubs were required to ask for for proof of club membership or guest status.
Most visitors were signed in by a relative who was a member, then introduced to bar staff. "It is like a family atmosphere and it works well".
"It is extremely harsh - particularly if the club is busy. People rock up and ask for a beer and you have to trust they're members."
Sometimes people were dishonest about their status, a practice used for covert checks by regulators, he said. Staff were "the last line of defence" and were occasionally caught out.
"You could probably count on one hand the number of times that happens in a year over 311 clubs, so we don't do a bad job.
"The Napier RSA is a bloody good club - they will be very disappointed."
The Taradale Club had its licence suspended for 26 days in 2011 for serving alcohol to people who were not members or bona-fide guests, following a similar breach in 2009 which resulted in a four-day ban.
The 2011 breach was uncovered by police after a serious assault outside the club.
A company having its Christmas function at the club was provided with 60 passes by a club employee, which named her as the club member responsible for each guest.