Following news in December that the NSW Government had approved the relaxation of the state's lockout laws — providing bars with live entertainment applied for an exemption — a number of iconic Sydney bars have been granted slightly longer opening hours.

As Fairfax reports, Kings Cross' beloved World Bar will now be allowed to serve last drinks at 3.30am instead of 3am and lock punters out at 2am instead of 1.30am.

Oxford Street gay bar Stonewall, alongside the Palace Hotel, ArtHouse Hotel and the Observer Hotel, have reportedly all been granted the half-hour extension.

Minister For Racing's Paul Toole stated, "Stonewall and World Bar demonstrated a genuine orientation towards live entertainment. Live entertainment helps provide more diverse nightlife options."

Fairfax report that 15 more applications for exemptions are still being considered.

The news arrives just a day before Keep Sydney Open take to Martin Place for their third and largest rally, with Montaigne, GANGgajang and more slated in to support the cause.