The gathering at former NSW State of Origin representative prop Paul Vaughan's house included the bulk of the Dragons starting side including Jack De Belin and Matt Dufty.

However, it was Vaughan who copped the most punishment for his involvement as the Dragons opted to sack the veteran prop immediately.

Ellis and the other 11 players all received fines based on their salary and history of any off-field indiscretions.

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Dragons CEO Ryan Webb told the club's website there had to be severe punishments.

"The board haven't taken any of the 13 players' actions lightly and reinforced this on Tuesday morning by taking these additional actions including the termination of Paul Vaughan's contract," he said.

"The club maintains it holds no reservations over the punishments already handed down by the NRL Integrity Unit and New South Wales Police.

"These additional penalties have been determined in such a way that the beneficiaries will be those affected by the players' misconduct."

All of the players were suspended for at least one week while Vaughan will miss eight games after the NRL issued their own penalties which took into account a previous COVID breach.

The players were also fined $1000 by New South Wales Police.

"The 13 players' arrogance and ignorance to both the NRL biosecurity protocols and the state government's public health order is upsetting and infuriating," Webb said

"All 13 players have let the rest of their teammates, the entirety of our hard-working staff, their families, the wider community and most importantly our Red V members, partners and fans, down."

The Dragons have the bye this weekend and will be forced to call on some of their NSW Cup squad members for their round 18 match against a red-hot Manly Sea Eagles side at 4 Pines Park on Friday July 18.

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