The video shows some people with Nazi flags draped over their shoulders
Allegations of the chanting of racist slogans at an event in North Somerset are to be investigated by police.
A video of the event, attended by an estimated 800 people, at the Bungalow Inn, Redhill, on Saturday night shows some people wearing Nazi regalia.
It was claimed chants including "sieg heil, sieg heil" can also be heard later on the tape.
The licensee and manager deny seeing Nazi regalia or hearing racist chants. Both deny supporting Nazi politics.
The police spokesman said that they take any reported hate crime very seriously and would be working with the local authority licensing department about the approval of the event.
The pub said the booking was made in good faith for what they believed to be a scooter rally for 500 people.
But people living locally said there were no scooters on site.
It is estimated that more than 800 turned up on Saturday night
It is believed many people at the event had travelled from Europe. Some had Nazi flags draped over their shoulders and were seen in the video laughing and joking.
A family that lived nearby were so frightened they left their home.
Sarah Gooding said: "My daughter was petrified. We ran into the house and I burst into tears.
"I told my husband 'I don't feel safe we've got to go'. Our daughters were really really frightened.
Licensee Anne Carter said: "It was something we were totally unaware of and not happy to think it was happening on any part of our premises.
"Anything the police want to do we'll support them in anyway we can."
Family flee neo-Nazi rally