In 2014, Glenavon House Hotel, in Cookstown, was found to have committed an offence by allowing a teenage disco to be held in its nightclub.
The Court of Appeal upheld the decision that laws restricting the presence of children on premises used to sell and consume alcohol had been breached.
The appeal was brought by the hotel's director, Brian Morris.
The court heard that the hotel had been running a monthly teenage disco in its Sense nightclub since 1994, during which no alcohol was being sold and no children were drinking alcohol.
Complaints were laid in November 2013 alleging that the hotel allowed a person under the age of 18 to be in licensed premises during the permitted hours contrary to the Licensing (NI) Order 1996.
Dismissing the appeal, the judge said that Sense nightclub is used mainly for the sale and consumption of alcohol.
He said that had the legislation, "wanted to exempt alcohol-free events for children on licensed premises used exclusively or mainly during permitted hours, it could have said so.
"Plainly it did not and it is not open to this court to build in such an exemption."
The judge added that the hotel put a considerable effort into ensuring that no alcohol was consumed at the event, but that this does not provide an answer to the current law.
A judge has dismissed an an appeal by a County Tyrone hotel that it did not breach licensing laws.