The office will pursue regulatory action against the Sydney-based event organiser, Snowtunes Pty Ltd, after its "seriously lacking and insufficient" security staff failed to control the 3600-strong crowd.

It prompted an angry response from the organisers who said some of the claims were false and they hadn't been warned of the action.

The seven-hour music festival was touted as a family-friendly event with 100 children in attendance.

In one particularly serious incident an intoxicated 13-year-old girl was found dazed and unaware of her surroundings inside the female toilets.

Two women so drunk they couldn't talk were taken to the medical tent for ambulance care, one continuously vomiting, while one of the acts was heard yelling, "f--- the police sniffer dogs, people just want to get high and have fun".

A 23-year-old man with a broken wrist, who had too much to drink, was seen struggling to stand, continuously dropping his mobile phone, tripping over his feet and losing a shoe, which his friends needed to help put back on.

When asked by inspectors if he was on medication, he said, "no, I drunk my way through the pain".

Another man was seen urinating in full view of hundreds of people next to the mosh pit.

According to the office, even staff who saw the man taking a leak failed to take action so, police intervened and arrested him.

A 21-year-old man will be charged with two counts of supplying alcohol to minors after he was discovered giving alcohol to two 16-year-old youths, while another six teenagers aged between 13 and 15 were found without appropriate adult supervision.

Later in the evening it took an hour and a half  to find a 14-year-old girl, who was only found after all other patrons had left the event after 12.30am.

Other breaches included an 18-year-old intoxicated woman drinking from a hip flask before vomiting in front of inspectors, while her drunk male friend also vomited.

Event organisers failed to begin security sweeps of the mosh pit before 10pm, while there were no obvious water stations or the promotion of water despite the event's licence including the need for free water stations at every bar.

Soft drinks were not available at the bar either.

Office compliance and enforcement director Anthony Keon said inspectors and police discovered an "alarming number of serious issues" at the festival.

"This, coupled with the risky nature of the event, created a potentially unsafe environment, particularly for minors," he said.

Mr Keon said organisers failed to adequately assess the risks of carrying out a large event and failed to properly plan or resource crowd supervision.

"Instead of properly monitoring the crowd for intoxication and safety issues, security staff were deployed to the event perimeter to stop people jumping the fence without paying for tickets," he said.

"By doing this they dropped the ball on what was going on in the general crowd and mosh pit areas and serious intoxication issues arose as a result."

Mr Keon said the Snowy Mountains was a "tourism mecca during winter" and a festival promoting skiing and snowboarding during the day, followed by a full evening of entertainment, could be a good thing if planned and conducted properly.

In a statement, Snowtunes organisers said the office had not raised any concerns with them after the event and they needed to provide evidence for the claims.

They said they would provide statements from police, security personnel and paramedics, who they said had given positive feedback after the event.

"Organisers of Snowtunes reiterate that safety and responsible service of alcohol are always our highest priority during any event," the statement said.

"The Snowtunes event met all security requirements with a high concentration of qualified personnel.

"Interaction with on-site policing was extremely positive and resulted in the police complimenting the organisers at the conclusion of the event."