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A report revealed cocaine and oxycodone was found when police officers swabbed toilet cubicles and sinks in December.
The venue said it would conduct staff training and introduce additional operating measures to address concerns.
Thames Valley Police licensing officer PC Declan Smyth requested Reading Borough Council review the licence, saying officers had been called to an "alarming number of incidents" at the venue, including assaults and underage drinking.
Councillors said it was expected the venue would temporarily close following the suspension of licensable activities, the Local Democracy Reporting Service said.
Source: BBC