The legislation, passed in the upper house this week, brings a range of sports and entertainment venues in NSW under a single management board, including McDonald Jones Stadium, Newcastle Entertainment Centre and Newcastle Showground.

Labor's sports spokeswoman Lynda Voltz said the legislation initially proposed by the government would have allowed the Sports Minister alone to approve residential and commercial development on Venues NSW land, including in Broadmeadow where the government has drafted plans for a 63-hectare site known as the Hunter Sports and Entertainment Precinct.

Ms Voltz said with support from the crossbench, the provision was removed and any proposal for such development would need to be approved by the Parliament.

"These changes will ensure sport and the community's interests will always come first in our sporting precincts," she said.

The government is yet to unveil its master plan and business case for the precinct's redevelopment, despite calls from property and business leaders earlier this year to fast-track the project.

Residential and commercial development were mooted by the government when it released a concept plan in 2017.

"It's important that a balance is achieved," Newcastle MP Tim Crakanthorp MP said.

"The last thing anyone wants to see is widespread residential development at the expense of providing the world-class sporting facilities NSW's second-largest city deserves."

Labor was also successful in securing the establishment of a Hunter advisory committee and the mandated appointment of a Hunter representative on the board.

Ms Voltz said the steps would be "critical" to ensuring the Hunter Sports and Entertainment Precinct remained a top priority for Venues NSW.