New South Wales liquor and gaming authority ILGA plans to hand administration of the ClubGRANTS programme to the state's chief revenue commissioner. Authority head Caroline Lamb cited operational strain and mounting criticism of the scheme in a statement Monday.
ClubGRANTS has operated since 1998, channelling gambling proceeds from poker machines into community health, social services and sport. Clubs with gaming profit above $1 million receive a tax rebate of up to 1.85% if they allocate at least 0.75% to community projects. The programme distributed $127 million in 2025, with $53.3 million going to sporting organisations.
Lamb said processing more than 500 applications each year within tight deadlines prevents proper compliance oversight. She believes the revenue office is better placed to handle it.
The scheme has drawn criticism for years. Clubs can direct funds to their own facility upgrades, and no mandatory audit of spending exists. Greens MP Cate Faehrmann called ClubGRANTS a rort: clubs cut their tax bill while claiming credit as community benefactors. 'It's not generosity, it's a rip-off,' she said.
Residents lost a record $2.38 billion on poker machines in the second quarter of 2026. Faehrmann accused the Labor government of dragging its feet on reform while the industry profits. Around 65,000 pokies operate in clubs across the state, with 87,000 machines in total. The government launched the first review of ClubGRANTS in a decade in 2023. The report was submitted in January 2025 but remains unpublished.
