The 16-year-old used a faked drivers licence to enter Sydney's Crown and Star casinos 22 separate times between April and August 2025.
Crown security permitted the Northern Beaches teen's entry on 19 occasions.
He was served complimentary alcohol and reached silver membership status with the gaming giant.
He spent $21,000 on the gaming floor and consumed a total of 91 drinks over the visits.
The Star also permitted his entry on three occasions during the period and he gambled $395 on their floor.
The NSW Independent Casino Commission on Wednesday fined Crown Sydney $1.75 million and The Star Sydney $500,000.
Their investigation followed a referral by Liquor and Gaming NSW.
The gaming watchdog's executive operations director Dimitri Argeres said the security failings were unacceptable.
"The breakdown in safeguards that allowed a vulnerable young person to repeatedly access casino gaming areas and suffer actual harm is unacceptable," he said.
"(Liquor and Gaming) will continue to monitor casino compliance with internal controls and other requirements designed to maintain the integrity of casino operations in NSW."
The watchdog also banned the boy from entering either casino for five years from the day he turns 18.
Casino commission chief Philip Crawford said identity processing was important for both the protection of minors and the detection of fraud.
"The NICC acknowledges both casinos have accepted responsibility for the significant failures in their identity verification and customer onboarding processes which have allowed this minor to enter their venues," he said.
"However, this does not diminish the seriousness of allowing a 16-year-old to enter casino gaming areas and gamble away a significant amount of money."
The casino commission can impose disciplinary actions and fines of up to $100 million against a casino operator.
A Crown spokesperson said the casino took obligations relating to minors and false identification "extremely seriously".
"In this instance, the individual used a fake driver's licence and attended the casino on multiple occasions, including when accompanied by his mother. We notified the regulator after becoming aware the individual was underage and have co-operated with its investigation," they said.
The casino continues to strengthen its processes and controls, the spokesperson said.
The Star has been contacted for comment.
The gaming giant reported an earnings loss of $8 million at the end of the fourth quarter of last financial year, as it continues to negotiate licensing issues with regulators.
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