The most violent venue in New South Wales, according to Government assault statistics, has had its late night trading hours cut after police urged liquor authorities to take action.

The Sydney Junction Hotel in the Newcastle suburb of Hamilton, also known as SJs, has been on the list of violent venues for more than a year, and is now in the highest tier of restrictions.

Newcastle police applied to the Independent Liquor and Gaming Authority (ILGA) in October 2017 calling for the pub's 3:00am closing time to be pulled back to midnight.

ILGA agreed the late closing time and nightclub-style operation was having a negative impact, but it stopped short of revoking late night trading.

From July 1, SJs will be required to close at 1:30am Mondays to Saturdays.

"Once again it's showing that the NSW Government is much more concerned about protecting pub profits, than looking after public safety," Newcastle anti-alcohol campaigner Tony Brown said.

Mr Brown was instrumental in pushing for tougher restrictions in the city 10 years ago.

Assault incident numbers at NSW venues in 2017: Premises Location Assaults Sydney Junction Hotel* Hamilton 25 Munich Brau Haus, The Rocks* The Rocks 21 Ivy* Sydney 19 The Coast Hotel Coffs Harbour 17 The Sunken Monkey Hotel Erina 15 Amaroo Hotel Dubbo 14 Sugar Lounge (NSW) Manly 14 Coogee Bay Hotel Coogee 13 Home Nightclub Sydney 13 King Street Hotel Newcastle West 13 Scruffy Murphy's Sydney 13 Beach Road Hotel Bondi Beach 12 Camden Hotel Camden 12 Penrith Rugby League Club Penrith 12 Source: Level 1* and Level 2 licences for the purpose of Schedule 4 of the Liquor Act 2007, including assault incident numbers for the period 01 January 2017 to 31 December 2017, NSW Dept of Industry

The so-called 'Newcastle model' — which combines lock outs, early closing times and alcohol restrictions — has the rest of the world paying attention.

They have been attributed with cutting alcohol-fuelled assaults in the city by more than a third and Sydney's lockout laws were introduced in 2014 on the back of their success in Newcastle.

Tony Brown is disappointed the authority did not support the police request for a full revocation of the hotel's late night trading. ( ABC Newcastle: Robert Virtue )

Mr Brown said the decision on SJs is long overdue, but he was disappointed ILGA did not support the police request for a full revocation of the hotel's late night trading.

"The matter also highlights the ineffectiveness of the so-called 'tough' NSW Government's violent premises and three strikes disciplinary schemes to provide effective and timely decisive action against offending licensed premises," he said.

"These are clearly not protecting the safety of NSW citizens, police and other brave frontline emergency workers and pub-goers."

Revoking late trading is in public interest: police

In its submission to ILGA, Newcastle police argued that high volumes of violence and intoxication are attributable to the extended trading hours of the hotel.

Police said the frequency and seriousness of assaults, intoxication and liquor licencing breaches are significant costs to the community.

The police submission outlines dozens of incidents of violent and drunken behaviour at the hotel, including a visit by covert officers in November 2016.

The officers said they used expired identification to enter the hotel and, once inside, ordered six alcoholic drinks when conditions prohibit more than four.

They said they were unable to use a water station because it was broken, and saw patrons being allowed entry without having their ID scanned.

We will appeal, hotel owner says

In his submission, SJs owner Campbell Rogers said he was in the process of selling the business and warned that up to 24 employees and contractors would be lost if the hotel's opening hours were changed.

Newcastle police found high volumes of violence and intoxication were attributable to the extended trading hours of the Sydney Junction Hotel. ( Supplied: Facebook )

He argued the venue has already implemented a number of additional requirements including the use of ID scanners after 9:00pm, no service of shots, shooters, or high strength drinks at any time, and using more security staff than required by its licence.

Mr Rogers contends the hotel accommodates 6,000 people per week, showing a high community demand for late trading licensed entertainment.

He told the ABC the decision would be appealed.

Not the time to weaken controls, campaigner says

Mr Brown said he was concerned that the matter comes amid a push by the Australian Hotels Association (AHA) to relax some of the strict measures controlling opening hours and the service of alcohol in Newcastle.

"Now is not the time for the State Government, under pressure from the AHA, to allow any weakening or relaxation of Newcastle's existing package of modest alcohol harm controls," he said.

"It's likely the Sydney Junction Hotel will appeal this decision, and that may further erode the penalty.

"The local community must also be afforded independent input into these vital public safety matters.

"Currently, these important ILGA deliberations are dealt with behind locked doors, away from public scrutiny and accountability."