GUILTY: Dean Denehy cops 175 hours community service for drug supply side hustle

Police established a strike force to investigate drug supply at the pub and fronted the premises in April, Magistrate Ian Cheetham said on sentence.

"Undercover police engaged with you, and on the first occasion at about midnight on the 8th of April you were identified to supply 1.24 grams of cocaine ... then on the following day you were monitored and supplied 1.67 grams of cocaine," he said.

Laboratory analysis found the powder to contain cocaine of between about 12 and 13.5 per cent purity.

When he was arrested, Denehy first told police he couldn't remember the dates and had no knowledge of drug supply, but was then shown footage of himself and conceded that it was him.

"I am very surprised that ... your employment has now been reinstated," Mr Cheetham said. "That would be a of concern to many people in the community as it is to me. I just find that astounding. How do they justify that? On any view this is serious offending."

Outside Raymond Terrace Local Court where he was sentenced on Wednesday, Denehy said he was no longer entitled to drink at the pub or socialise there, and his employer had decided to give him a second chance because he had taken responsibility for his actions.

"They fired me when it all happened," he said. "I've owned up to it, and I've made a mistake, and he (the manager) is giving me that chance."

Denehy, 42, said he was intoxicated at the time, and supplied cocaine to "two beautiful ladies", in the hope that he may form a romantic relationship with one of them.

His defence solicitor described the amounts he supplied as "two bags of cocaine ... they were trivial". Mr Cheetham disagreed saying the bags sold for $600 and $650. "That was not trivial amounts," he said. "He knew what he was doing, these were two consecutive days."

While his sentencing assessment report said the behaviour was completely out of character, that was not entirely true because Denehy had a previous conviction for drug possession, the magistrate said.

He was sentenced to a 14 month intensive corrections order, and to perform 175 hours of community service.