The video shows Mario snorting what appears to be cocaine with a rolled up bank note.
According to reports, Mario took the drug in a friend’s kitchen after a night out.
A source told The Sun: ‘We had been out as a group and wanted to carry the party on. Mario had his own ideas on how to do that, though.’
‘He just started snorting this stuff in front of everyone. No one could believe their eyes.’
Possession of cocaine can lead to a sentence of seven years behind bars. Supplying cocaine can lead to a maximum life sentence and an unlimited fine.
The tape has been released just as TOWIE bosses were gearing up to make him the headlining star of the hit reality show.
The source continued: ‘This video could be the end of Mario’s television career.’
‘He’s become an important part of the show in the last three years but the show doesn’t make exceptions for anyone when it comes to drugs. He should know that.’
‘The show is watched by millions and is in its 11th series now so producers are certainly in a position where they can drop characters who are more trouble than they’re worth.’
A friend of Mario’s also told The Sun: ‘He knows he’s been a silly boy. He does regret his actions and is sorry.’
‘It’s now up to show chiefs whether or not he gets suspended or gets the sack.’