The Marina Metro Hotel, at Havre des Pas, was twice caught failing to adhere to the rules, which were introduced in the spring to help prevent the spread of the virus.
The Assembly heard this week that States police officers raised concerns with the licensee during two late-night visits in September.
Footage from the officers’ body-worn cameras was played during the hearing which showed customers failing to physically distance.
It also showed people dancing, shouting and drinking while standing, which is discouraged under the regulations.
On the second occasion, officers found that the number of people in attendance at a private event far exceeded the maximum number of 40.
The Assembly heard that the hotel had received advice on how to comply with the regualtions before it committed the breaches.
Home Affairs Minister Len Norman said: ‘I hope this case will act as a warning by showing that the authorities will take action when licensees breach the public health guidance.
‘Despite numerous visits and provision of advice from representatives from across all the regulatory bodies the Marina Metro Hotel persistently breached guidance which is in place to protect Islanders and to help reduce the spread of Covid-19 in Jersey.’
He added: ‘We are all responsible for helping to mitigate the spread of Covid-19 within our community, but hospitality venues have a particularly important part to play to ensure we can continue to enjoy the freedoms we have managed to achieve.
‘This involves not just the licensees, but also all of those visiting such venues, playing their part to ensure the safety of those around them, and to act accordingly.
‘I would urge any licensees who are uncertain about the public-health guidance to get in touch with the regulatory bodies to ensure they are operating in a safe manner.’
*The number of active Covid cases in the Island rose by five yesterday to 78.