Police were conducting licensed premises inspection at the Amaroo Hotel on April 3 this year when they noticed Daniel John Horder "acting suspiciously" and evade police.

Officers said the 24-year-old saw police and made a quick exit to the outdoor smoking area.

The officers followed Horder and asked him why he was avoiding them, when he said he had been in trouble with police before.

When police asked what kind of trouble, he said "drugs" before admitting he had about five "caps" (MDMA) on him.

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Horder was searched outside the Amaroo Hotel where he produced a clear resealable bag containing six pink capsules - 1.12grams of MDMA - from his wallet.

He was placed under arrest when he told police he had purchased the MDMA capsules for $250 earlier in the night, and said it was for personal use.

He told the officers it was not unusual for him to consume between 10 and 15 capsules in one outing.

In Dubbo Local Court last week Horder was sentenced for possessing a prohibited drug.

The court heard Hoder was just a few weeks away from finishing an 18-month community corrections order imposed in 2020 following a court hearing which found him guilty of supplying MDMA and cocaine at the Amaroo Hotel in 2019.

Defence lawyer David Hemsworth said his client had been clean following the offence in 2019, however fell back into drug use following the death of his grandfather, who died two weeks prior to the offence.

He said Horder's two year relationship had also broken down which contributed to his relapse.

While Mr Hemsworth explained his client had used drugs since the age of 21, he said he had made "some efforts" to break his habit, describing the issue to be socially influenced rather than it being an addiction.

Mr Hemsworth asked the court to consider imposing a fine or community corrections order, noting if this was a supply charge his submissions would be completely different. He also asked to take no further action on the almost finished community corrections order.

Magistrate Theresa Hamilton noted this matter had "quite different circumstances" to the offence in 2019 and there was no indication he was supplying the drugs.

Horder was convicted and fined $350. Magistrate Hamilton took no action on his breach of bond from 2020, accepting it had now expired.