Under the reforms, a new government regulator, Liquor and Gaming NSW, will replace the Office of Liquor, Gaming and Racing (OLGR) and undertake the work of the Independent Liquor and Gaming Authority (ILGA).

ILGA will remain a board that makes decisions on high-risk licence applications, such as new bottle shops or nightclubs, but it will be provided with support services from the government rather than independent staff.

Deputy Premier Troy Grant said the changes, which included 20 per cent more compliance officers, would clear a bottleneck of liquor applications and complaints, increase compliance capacity and resolve confusion in the current system.

"Liquor laws have never been tougher, and we need a regulator that is equipped to effectively enforce these laws," Mr Grant said.

But Greens MP John Kaye says the changes weaken the independent body and punish it for limiting opportunities for excessive gambling and alcohol abuse.

"The changes to ILGA are not administrative, they are a fundamental attack on the integrity and independence of alcohol and gaming regulation in NSW," Mr Kaye said.

"Deputy Premier Troy Grant is turning the authority into a toothless tiger by stripping it of staff who are free from political pressure."

ILGA chair Chris Sidoti has previously spoken about the importance of the authority's independence.

"Independence is at the heart of the authority's nature and functioning. It is made possible through staff who are accountable only to the authority and resources under the control of the authority," he wrote in the 2013-14 annual report.

Under the shake-up, community members, pubs and clubs will also be allowed to appeal against ILGA's decisions to the NSW Civil and Administrative Tribunal.

Mr Grant said community members affected by liquor licence decisions would have a far greater say, with a new ability to lodge low-cost appeals.

"Previously a decision made by ILGA was final, unless you had the financial capacity for a Supreme Court appeal, making it almost impossible for the community's voice to be properly heard," Mr Grant said.

But Mr Kaye said the merit-based appeal of licensing decisions made by ILGA would allow clubs, pubs and bottle shop chains the opportunity to use expensive lawyers to overturn decisions on poker machine entitlements or rejections of licence applications.

"If this goes ahead the minister will be able to exercise influence over its decisions through pressure on staff, and pubs and clubs will inevitably deploy expensive lawyers to overturn any determination they don't like."

Newcastle solicitor and anti-violence campaigner Tony Brown said the government had bowed to industry pressure and created a costly and unwarranted layer of appeals that would only benefit the alcohol industry.

"The real winners would unmistakenly be the powerful NSW liquor and gambling industry who now can appeal sensible ILGA decisions to a tribunal that has no specialist knowledge and experience in alcohol and gambling harm prevention and social impact assessment."

Mr Grant said the changes were needed to address criticism of the current structure, which often took too long to resolve high profile cases.

In one instance a decision relating to Marrickville RSL took 371 days, while there was no venue for its members and a disciplinary complaint against Parramatta Leagues Club took more than 290 days.

"Also under the new arrangements, the ILGA board will be directed to meet more frequently, allowing them to make decisions much quicker, improving certainty for the community."

He said stakeholders had been briefed about the changes and they would be implemented over the next six months.

ILGA was established in 2008 under the name of Casino Liquor and Gaming Control to replace the Licensing Court, the Liquor Administration Board and the NSW Casino Control Authority.