Liquor & Gaming NSW says CCTV footage shows revellers at Odyssey Bar Restaurant at Leichhardt in the inner west mixing freely and dancing around the venue last month.

The fine comes as a team of 30 inspectors from the NSW Department of Customer Service return on Wednesday to southwest Sydney for a second COVID safety blitz after almost 100 breaches were detected at hospitality venues last Friday.

Inspectors will also be visiting pubs and clubs screening the second State of Origin rugby league game on Wednesday night to check for COVID compliance.

Liquor & Gaming's Dimitri Argeres said a "complete disregard for social distancing" at Odyssey Bar Restaurant resulted in two $5000 fines.

"It's hard to fathom how staff could have failed to notice and stop things getting out of hand as patrons had in effect created multiple dancefloors," Mr Argeres said in a statement.

The inspections in Sydney's southwest are part of a joint blitz by authorities checking for COVID safety breaches in the lead-up to the festive season.

Of the 74 hospitality venues inspected, 13 were not registered as COVID Safe, 39 did not have a current safety plan, 20 had issues with record keeping, seven were not properly adhering to social distancing, two had hygiene issues and 13 had no COVID-19 safety marshal.

"One venue had not registered as COVID Safe, had no safety plan, had not recorded any patron details since July, had no conditions of entry and had not spaced seating and tables to allow for physical distancing," Mr Argeres said.

More blitzes are planned for across NSW in the coming months so to keep the public safe during the festive season.

Australian Associated Press