Dunedin alcohol harm prevention officer Sergeant Ian Paulin and liquor licensing inspector Tony Mole have lodged submissions opposing the renewal.
They said Mr Campbell, in performing a layback, acted against the Sale and Supply of Alcohol Act 2012.
"The activity portrayed in the photograph questions the applicant's suitability to be a manager and is also clearly against the object of the act," Mr Mole said.
After discovering the photograph on the internet on February 11, Mr Mole visited Craft Bar and spoke to general manager Phil Ellis, who "expressed some dismay at what the photograph displayed".
A few days later, Mr Ellis, Mr Mole, Mr Campbell and Mr Paulin met at the Central Dunedin Police Station to discuss the matter.
"Mr Campbell stated that he was the duty manager at the time of the incident and he had been persuaded into offering a layback. The drink being used was Baileys and only one person received the layback," Mr Mole said.
"Mr Ellis advised that Mr Campbell had been suspended, and when he returned to work it would not be as duty manager," he said.
Mr Paulin said Mr Campbell first obtained a manager's certificate last April, and was in his "probationary" first year as a manager.
"This is a year in which police expect a duty manager's record to be unblemished," he said.
Mr Paulin initially approved the renewal of Mr Campbell's certificate, but withdrew his support after being alerted to the photograph.
He told the Otago Daily Times Mr Campbell's layback was one of several breaches in Dunedin of the new act, which came into effect on December 18 last year.