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The Brixton 02 Academy's licence has been suspended as it emerged concerns were raised about the strength of the front doors three years before a fatal crush at a concert last week.
Afro-pop singer Asake's gig was cut short when a large number of people tried to enter the foyer on Thursday.
Rebecca Ikumelo, 33, died on Saturday, while Gaby Hutchinson, 23, died on Monday.
The south London venue's licence has been suspended until 16 January.
Lambeth councillors met earlier to decide whether to immediately suspend the academy's licence, ahead of a full review next month.
The Metropolitan Police wanted Lambeth Council's licensing sub-committee to suspend the licence throughout the force's investigation.
During the council meeting, the police said there had been a similar crush in 2020 when concerns were raised about the strength of the front doors.
The owners instead offered to remain closed for 28 days. One show has already been postponed and another on New Year's Eve has been cancelled.
Five more shows were due to take place between now and 16 January.
At the meeting, a lawyer representing the police said the owner's offer to temporarily close was "inappropriate and wrong".
"It is not right, I suggest, to leave a decision as serious as this one in the hands of the licencee," said Gerald Gourier.
He added: "Whilst what happened last Thursday of course was exceptional, no one should begin to think that it was unique or could not happen again."
Stephen Walsh KC, representing the Academy Music Group, told councillors: "It is clearly far too early, as the police have accepted, to draw any conclusions about the causes of the tragedy, let alone to point the finger of blame at any party or parties."
He said: "The O2 Academy Brixton recognises the gravity of the events which occurred on the night of 15 December, and expresses its sincere condolences to the families of those who died during the tragic incident, and its genuine concerns for anyone affected by it.
"The licence holder, Academy Music Group Limited, is committed to ensuring that vital lessons are learned through its own detailed internal investigation."
The third sold-out concert in a week by Asake had to be cut short when a large number of people tried to enter the venue.
Gaby Hutchinson, 23, from Gravesend in Kent, who died following the crush, was a security contractor working at the venue. Nursing graduate Rebecca Ikumelo, 33, from Newham, east London, who also died in the following days, was a mother of two children.
A 21-year-old woman remains in a critical condition in hospital.
A summary review is a fast-track review process brought by the police when they consider that the premises concerned is involved in serious crime, serious disorder or both.
It allows the licensing authority to take interim steps where it considers it necessary, pending a full review.
Met Police Commissioner Sir Mark Rowley told the BBC on Wednesday a team of detectives was investigating the fatal crush to determine "if there are any criminal liabilities involved".
A statement on the Lambeth Council website said: "We are shocked and saddened by the devastating incident in Brixton on Thursday night, and are working to support our communities in the wake of this tragedy."
A total of 173 shows took place at the venue during 2022.
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