The bar, called Playhouse, which is on the main strip in Magaluf, and the organisers of Carnage – an organised bar crawl – have been handed the punishment by the local council.
They have reportedly been asked to share the fine.
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The seedy video, which emerged last month, caused public outcry when it went viral.
Shortly afterwards, council chiefs announced they would be cracking down on bar crawls, limiting their numbers and ensuring that licences needed to be in place before any ‘crawls’ went ahead.
Playhouse and Carnage must shut for a year unless they win an appeal – which the director of Carnage, Paul Smith, said they would do – that they must lodge within 15 days.
A spokesperson for the council said: “We haven't acted on the spur of the moment based on the sole evidence of a video posted on the Internet. I think the message is clear.
“The town hall won't tolerate activities of the kind featured in the video under any circumstances. We will use all the laws we have available to us to ensure there is no repetition.”
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